Identify inherent risk factors common to businesses facing such competitive conditions. The dramatic increases in debt and the rising of AP would also catch my attention and warrant extra audit attention. I compared Just For Feet, Inc.
Typically a large chain would generate positive cash flow. Rank these risk factors from least to most important and be prepared to defend your rankings. The biggest thing that sticks out to me is the inventory turnover.
The large high-volume stores also tend to have a high volume of cash This cash flow looks more like a start up than a large established retail chain. Contemporary Auditing Real Issues and Cases 7th ed. Briefly explain whether or not you believe that the Deloitte auditors responded appropriately to the five critical audit risk factors that you identified.
Inventory controls are a large issue in large high-volume retail stores, particularly counting and valuing it. A set of common sized financial statements and ratio computations are provided in Excel.
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.
Solution Summary Your tutorial is words and includes a list of ten audit risk factors and discussion about features of large retail chains that increase audit risk.
Before responding, identify the parties who will be affected by your decision. Also compute key liquidity, solvency, activity, and profitability ratios for Add Homework help from our online tutors - BrainMass. I believe that the negative cash flow from operations should be an audit flag.
Given these datacomment on what you believe were the high-risk financial statement items for the Just for Feet audit. Identify the 5 audit risk factors that you believe were the most critical to the successful completion of that audit.Transcript of Just for Feet Fraud Case.
Just for Feet, Inc.
The Business Strategy: Just for Feet Stores-within-a-store concept Each vendor/brand had their own section/display Created competition between vendors Vendor allowances Customer Service Extensive training course of footwear technology.
We will write a custom essay sample on Feet case study specifically for you for only $ $/page. Order now Since there is such a high turnover of cash in a large retail store, there needs to be good internal controls in place that will prevent false accounts receivable, and a misrepresentation of revenues.
Just for feet operated in. JUST FOR FEET, INC. CASE STUDY QUESTIONS Based on Case Study Just for Feet, Inc. Contemporary Auditing Real Issues and Cases 7th ed.
Michael Knapp 1) Prepare common-sized balance sheets and income statements for Just for. View Essay - Just for Feet Case Study David Schlosser from AC at Kaplan University. David Schlosser Just for FEET Inc. Case Study Advanced Auditing Prepare common-sized balance sheets and income91%(11).
View Homework Help - Week 3 Case Study (Just For Feet) AC - Brenda Harris from AUDITING AC at Kaplan University, Davenport.
Running head: JUST FOR FEET 1 Just For Feet Brenda Harris AC July%(47). Essays - largest database of quality sample essays and research papers on Just For Feet Case Study Solutions.Download