Leslie Faye

Leslie Fay Companies 1.) Clearly Inventories was a big item to address on with Accounts Receivable. Sales and gross pro fit(p) 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.) frontmost of all I would want to investigate vendor and client accounts to reconcile payable and receivable amounts. Also, I would obtain depone statements and other lines of credit since the long term debt to equity counterbalance 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 take stock. This would imply if there might be exaggerate numbers in an area that is not growing or declining in lieu of consumer preferences. Second, the health of the economy plays an important opine in planning an audit. During a recession or loggerheaded economic growth, companies may be under more focus to manipulate figures. 4.

) The domineering effect of one person all over financial accounting records should be highly skeptical to auditors. account 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 shoul d bring a higher level of skepticism to the ! audit and increase control risk and substantive tests. 5.) BDO filed a font against management of Leslie Fay. Independence is therefore impaired to do a thorough audit because a conflict of interest exists. care of Leslie Faye may feel the need to withhold necessary randomness from BDO due to the nature of the lawsuit.If you want to get a full essay, order it on our website: OrderCustomPaper.com

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