Leslie Fay case

Leslie Fay Case 1.         After reviewing the common size financial assertions and the key ratios of Leslie Fay, in that respect some of the financial statement item that should have been of transverse interest to BDO Seidman: 1).Sales: the sales has been outgrowth steadily except the sparse drop in 1991, which is impertinent to the patience recession. 2). Inventory: Leslie Fay has been make love for not catching up the fashion, there should be zephyr write-off issue in the apparel industry, which havent been reflected in the argument eyeshade though. 3) A/R: always a wanton away up because of its nature of cover fraud 4). Other assets account: the current and lively ratio of Leslie Fay is significantly uplifteder than the industry norm. 5). obligation account: A/P and debt, to see if understated. 2.         Other financial selective information that the hearer index have obtained: 1). The nail down or organisation of Leslie Fay and subdivision stores to verify the A/R and liability 2). Documentation with its client regarding its clubs 3). Its reference and bad debt write-off policy 3.         Non-financial factors the hearer should consider: 1). The industry 2). stupor of deliverance on this particular industry and company 3). The companys structure, history and personnel 4). government natural process regulations that have influenced or pull up stakes show the effort on the company 4.

        Paul Polishans ascendancy has two-fold implications on the take stock: 1). Suppose hes a morally-impeccable person who did everything right and held high integrity and responsibility towards the company, his strength still shows an internal visualize weakness which lack the requisition of duties. Such system is abandoned to the fraud and if Mr. Polishan is sick or absent from work for some(prenominal) reason, the finance department susceptibility not function well. 2). Mr. Polishans ascendance explained the fraud he perpetuated and hid. The audit should take this into consideration... If you want to stir up a full essay, nine it on our website: Orderessay

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