Explain why management might want an independent audit

Assignment Help Auditing
Reference no: EM13887473

Green Day Golf Distributors is a relatively small, privately held golf distributing company that operates in the Midwest and handles several product lines, including shoes, clothing, and golf clubs. It sells directly to golf shops and does not sell to the big retailers. It has approximately $8 million in sales and wants to grow at about 20% per year for the next five years. It is also con- sidering a takeover or a merger with another golf distributorship that operates in the same region.

a. Explain why management might want an independent audit of its financial statements.

b. What are the factors that Green Day might consider in deciding whether to seek an audit from a large national audit firm, a regional audit firm, or a local firm?

c. What types of users might be interested in Green Day's financial results?

Reference no: EM13887473

Questions Cloud

Create gui application that allows the user to enter the : A movie theater only keeps a percentage of the revenue earned from ticket sales. The remainder goes to the movie company. Create a GUI application that allows the user to enter the data into text fields.
On which day of the week were you born : What is the probability that the 13th of any month falls on a Friday? The answer is close to, but not exactly equal to, 1/7.
Direction depending on the needs of the animal : . Action potentials normally travel along an axon in either direction depending on the needs of the animal.         True        False
Problem regarding the martensite and austenite : Assume that this expansion occurs equally in all directions. For steel, the coef?cient of linear thermal expansion is α = 6 × 10-6/?C, Young's modulus is 30 × 106  psi, and υ = 0.29. Assume these apply to both  martensite and austenite. Find the stre..
Explain why management might want an independent audit : Explain why management might want an independent audit of its financial statements. What types of users might be interested in Green Day's financial results?
Compute the aftertax cost of interest payment : Collin Products received notice of a $21,000 income tax deficiency plus $4,300 inter-est. The deficiency related to an incorrect method of accounting for business inventory. Compute the after-tax cost of the $4,300 interest payment assuming that: a. ..
Material composed of equal volumes : Consider a material composed of equal volumes having different yield strengths, YB = 1.5YA, but the same elastic moduli, EA = EB. Assume that during strain- ing both regions undergo the same strains (εA = εB ) and that there is no strain- hardening i..
Current status of personalized cancer therapy : Prepare a report of 2800 words on given topic "Personalized Cancer Therapy, a Step Forward".Explain about Current Status of Personalized Cancer Therapy.Which Tests Commonly Used to Optimise Cancer Therapy
Describe the users of audited financial statements : Why is it important that users perceive auditors to be independent? Describe the users of audited financial statements and the decisions that they need to make based on reliable information.

Reviews

Write a Review

Auditing Questions & Answers

  Reimbursement rates-contribution margin

What are the expected rates of reimbursement for this time frame for each payer? What is your expected accounts receivable? What is the rate that you should charge for these services (using one charge rate for all payers)? Find the total charges for ..

  Material or immaterial to the financial statements

The fraud was not detected by the external auditors.

  Comommunicating results assignment facts

The internal audit function identified the following observations, which have been agreed to by management

  Flexible and static budget-green pastures

Green Pastures is a 400-acre farm on the outskirts of the Kentucky bluegrass, specializing in the boarding of broodmares and their foals. A recent economic downturn in the thoroughbred industry has led to a decline in breeding activities, and it h..

  Federal financial assistance have on the audit process

1.The audit firm of Waggoner and Allen, LLP, recently received a request to submit a proposal to audit the financial statements of the Williamson County Public School System.

  Sample size determination

A bank manager wants to determine the percent of time that tellers are working and idle. She decides to use work sampling, and her initial estimate is that the tellers are idle 30 percent of the time.

  Audit of the financial statements of keystone computers

The company's debt agreement with Western Financial Services requires the company to furnish the lender a report by our firm on KCN's compliance with various restrictive debt covenants.

  Autonomy of mexico central bank

In 1993, President Carlos Salinas de Gortari proposed a bill that would formally grant the Bank of Mexico-As an investor, how would you view such a proposal? What other changes might help to amplify the signals sent by this proposal?

  Footnote analysis amortization interest segments of disney

What summary journal entry did Disney make to record interest incurred during fiscal 2009? (Hint: Don't forget to distinguish between interest incurred and cash paid for interest.)

  What is the level of detection risk

Why would the courts want to limit the ability of third parties to sue auditors who have been negligent? Are there any arguments that this liability should not be limited?

  What role has martha stewarts image played

What is pro forma reporting according to regulation SX of the SEC? How has pro forma reporting been used by corporations over the years? Summarize the arguments for and against this type of reporting.

  Predecessor auditor and a new client

List and show the steps AOW should follow with regard to dealing with a predecessor auditor and a new client before accepting the engagement.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd