Rank these risk factors from least to most important and be prepared to defend your rankings. Typically a large chain would generate positive cash flow. Inventory controls are a large issue in large high-volume retail stores, particularly counting and valuing it.
This cash flow looks more like a start up than a large established retail chain. Identify the 5 audit risk factors that you believe were the most critical to the successful completion of that audit. Briefly explain whether or not you believe that the Deloitte auditors responded appropriately to the five critical audit risk factors that you identified.
A set of common sized financial statements and ratio computations are provided in Excel. Contemporary Auditing Real Issues and Cases 7th ed. The large high-volume stores also tend to have a high volume of cash The dramatic increases in debt and the rising of AP would also catch my attention and warrant extra audit attention.
I believe that the negative cash flow from operations should be an audit flag. Before responding, identify the parties who will be affected by your decision. Michael Knapp 1 Prepare common-sized balance sheets and income statements for Just for Feet for the period Also, inventory is such a large proportion of total assets over half so it should get a lot of attention and work.
The biggest thing that sticks out to me is the inventory turnover. Identify internal control risks common to such businesses.
Also compute key liquidity, solvency, activity, and profitability ratios for Common sized financials and ratios are in Excel attached. How should these risks affect the audit planning decisions for such a client?
Identify inherent risk factors common to businesses facing such competitive conditions. Given these datacomment on what you believe were the high-risk financial statement items for the Just for Feet audit.Inherent Risk Factors; audit planning decisions.
Businesses that face extreme competition are susceptible to many inherent risk factors – the measurement of the auditor’s assessment of the likelihood that there are material misstatements in an account balance before considering the effectiveness of internal control.
Just for Feet, Inc. CONTEMPORARY AUDITING REAL ISSUES AND CASES Seventh Edition Michael C. Knapp University of Oklahoma Case Just for FEET, Inc. 23 In the fall ofjust a few months after reporting a record profit for fiscalJust inherent risk factors, and auditors' civil liability under the federal securities laws.
Given these data, comment on what you believe were the high-risk financial statement items for the Just for Feet audit.
2) Just for Feet operated large, high-volume retail stores. Identify internal control risks common to such businesses. Home Page; Current: Just For Feet Operated In An Extremely Competitive Industry Or Sub Industry Identify Inherent Risk Factors Common To Businesses Facing Such Completive Conditions How Should These Risks Affect The A Just For Feet Operated In An Extremely Competitive Industry Or Sub Industry Identify Inherent Risk Factors Common To Businesses Facing Such Completive Conditions How.
3) Just for feet operated in an extremely competitive industry, or sub industry. Identify inherent risk factors common to businesses facing such completive conditions. How should these risks affect the audit planning decisions for such a client?
Just for Feet Based in Birmingham, Alabama, Just for Feet (JFF) was established in and became a publicly traded company in Despite a period of slow growth in the retail industry, JFF expanded rapidly from toDownload