In: Accounting
The audit team is preparing to audit a new client in
the fashion industry. The client imports garments from
manufacturers in several Asian countries and retails them in a
chain of shops located throughout the United States.
You have access to the following information for the client:
a. prior period financial statements
b. anticipated results for the current year
c. industry averages
Required
Discuss how you would use the information to understand your new
client.
When the auditing team is preparing to audit a new client in the fashion industry, then its information could be gathered through the prior period’s financial statements alongwith current years and industry averages data available. The following informations are gathered through data available:
The information helps to gauge the audit work and accessing the risk of creating views about the company’s operations and financial position.
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