Leslie Faye

Leslie Fay Companies 1.) Clearly Inventories was a big item to address on with Accounts Receivable. Sales and gross pro tally were stellar in a time of industry unease. Furthermore Accounts Payable decreases as a percentage of current liabilities while Inventories increase as a percentage of current assets. This is an implausible trend on the fit sheet that BDO should have investigated further, especially with Leslie Fays outstanding Income Statement. 2.) inaugural of all I would want to investigate vendor and client accounts to reconcile payable and receivable amounts. Also, I would obtain trust statements and other lines of credit since the long term debt to equity agreement shows the company being highly leveraged. 3.) First, consumer trends for an industry, especially one reliant on tastes such as womens clothing, should be considered in planning an scrutinize. This would imply if there might be widen numbers in an area that is not growing or declining in lieu of consumer preferences. Second, the health of the economy plays an important trope in planning an audit. During a recession or muffled economic growth, companies may be under more direction to manipulate figures. 4.) The domineering effect of one person all over financial accounting records should be highly skeptical to auditors. accounting system involves a large number of estimates and judgment in accounts so that person may be close-minded to anothers judgment. Also management override of accounts in the financial statements should be of concern. The auditors should bring a higher level of skepticism to the audit and increase control risk and substantive tests. 5.) BDO filed a import against management of Leslie Fay. Independence is therefore impaired to do a thorough audit because a conflict of interest exists. management of Leslie Faye may feel the need to withhold necessary sulfur from BDO due to the na ture of the lawsuit.If you want to get a c! onstitutive(a) essay, order it on our website: BestEssayCheap.com

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