Facts of the Case In Mitchell v. Abercrombie & Fitch, Co. the petitioner proposed a case against Abercrombie & Fitch stating that the defendant has violated both the Fair Labor Standards Act and the Ohio Minimum Fair Wage Standards Act. The plaintiff, Melissa Mitchell, has decided to pursue a lawsuit on behalf of herself as well as other affected members. The specific violations that arise from these two acts stem from Abercrombie & Fitch’s negligence with regards to paying Managers-in-Training and Assistant Managers the proper raised compensation of overtime pay (428 F.Supp.2d 725 (2006)).…
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our…
The client’s management is responsible for preparing the financial statements which auditors examine and issue a report, thus providing reliability of the financial statements by users when making economic decisions. The auditors’ report on financial statements and related disclosures for both public and nonpublic entities provides or disclaims an opinion on whether the financial statements and related disclosures are presented in accordance with the Generally Accepted Accounting Principles (GAAP) (Louwers, Ramsay, Sinason, Strawser, & Thibodeau, 2015). This opinion is the conclusion reached by the auditors after tests of controls and substantive procedures that have been performed during the audit engagement. Paragraph 10 of Auditing Standard 3101 “Reports on Audited Financial Statements” states the type of opinion the auditors may express in various circumstances (PCAOB, 2016):…
I am against that the textile factories were bad for the health of the workers. The reason I am against it is because it is not good for your health, here are some reasons why. In the paragraph on Document A one of the answers it says that when the workers get out work they go to the doctor and become patients. The reason they go to the doctor is because their health is not good.…
FACTORS: Statement “The Risk Assessment Standards establish standards and provide guidance concerning the auditor’s assessment of the risks of material misstatement in a financial statement audit and the design and performance of audit procedures whose nature, timing, and extent are responsive to the assessed risks.” (Risk Assessment, 2017). An auditor doing a risk assessment would look at materiality, results from previous audits both internal and externa, data sources, among others and the auditor must look at the level of risk as well. Reviewing the income statement for Kroger Company there was an increase in Sales/Revenue for the year 2017 over 2016:…
The fraud perpetrated at Rite Aid could have been detected through the reconciliation of liabilities with monthly statements from the creditors. By reconciling the liabilities with the vendors’ statements, the auditors would have been able to detect any omission of liabilities or the reversal of expenses as was the case at Rite Aid. Also, the auditors could have used analytical procedures such as ratios for the year of audit and compared it to prior periods to detect unusual patterns or trends. However, the fraud at Rite Aid had the support of management, which made it difficult to detect.…
Evaluate any damaging financial and ethical repercussions of failure to include the inventory write-downs in the financial statements. Prepare a recommendation to the CFO, evaluating the negative impact of a civil fraud penalty on the corporation as a result of the IRS audit. In the recommendation, include essential internal control procedures to prevent fraudulent financial reporting from occurring, as well as the major obligation of the CEO and CFO to ensure compliance. Inventory write-downs are recorded by reducing the amount reported as inventory. Inventory write-downs include the operating expenses that the management team or the company has incurred.…
I do not think that the English Textile factories were a good place for the health of the working class, because it was not a safe environment, there were a lot of little kids working machines, the workers of all ages worked for very long periods of time a day (5 am to like 10+pm), and also they got beaten at the factories. The English Textile factories were horrible with the health of their workers, kids of the age of 5 and older were working and they would hurt themselves or even others on accident because they were so young and did not have that much knowledge or experience of how to work the machines, But honestly, who expects a 5 year old to know how to work a machine like they had back then in the factories? Also back to the little kids, they got hungry and tired more easily than the adults did probably. Because they were so young, they usually got naps every now…
When I was a young girl, I played with Polly Pockets. I was completely enamored with all of the possibilities of fashion for my toys. This hobby of playing dressup with my Polly Pockets turned into a hobby which quickly turned into college hunting. The college that has grabbed my attention the most is the Fashion Institute of Technology. The Fashion Institute of Technology is a college of art, business, design, mass communication and technology within the Fashion Industry.…
First, during an audit, an auditor should ensure that they obtain the appropriate assurance to tackle the audit risk. Many people assume that the information gathered from the third party is more reliable than the evidence collected by the audited company. However, in the case study, the company had already colluded with its suppliers to provide false information to the audit team, and this jeopardized the review process. Therefore, it is advisable for an auditor to ensure that they maintain a professional skepticism by considering previous audit reports and the relationship between the audit client and the third party. Consequently, over-reliance on a third party during an auditing process, although proven to be efficient since it is free from adjustment or influence by the client audit.…
According to “Going Global: The Textile and Apparel Industry” by Grace Kunz and Myrna Garner (2011) , “China, the country with the greatest population in the world, is now the largest trading nation in the world, followed by the United States, Japan, and Germany” (p.339). China has a labor force of 812 million people with an unemployment rate of 4.3% and the total poluation for China is around 1.3 billion people (Kunz & Garner, 2011, p. 344-345). In 2008, China’s textile exports equaled over 65 million in US dollars compared to textile imports of a little over 16 million (Kunz & Garner, 2011, p.348-349). Also in 2008 the apparel exports in China equaled little under 120 million in US dollars compared to a little over two million in imports…
Mrs. Wardlaw, I am reaching out to you today to discuss the possibility of fraud within the Apollo Shoes financial statements. After reading through some company documents in preparation of this Audit I have noticed multiple red flags that although in themselves do not constitute fraud outright, they do demand that we investigate this issues further to ensure fraud is not taking place. Through my initial research I believe the possibility of fraud at Apollo Shoes to be very high, and as such we must take precautionary measures to avoid risk falling back on the firm. In my next paragraphs I will outline some of the questionable practices I have noticed from the board of directors meeting minutes, and my analytical review, and why these factors…
The Survival of Knights Apparel When Knights Apparel made the decision to reopen a company that is based overseas in another country to assist in their production, the challenges began. Bozich wanted to eliminate unjust treatment that many individuals who work in factories overseas endure. It is crucial to communicate clearly, what the changes will entail along with addressing any dilemmas that may develop during the transition. This modification does not just affect the employees; it affects the company as a whole.…
Prices Yarn (Rs. / Kg) Rs. 160 Grey Fabric (Rs. / mtr) Rs. 62 Cost of Accessories (Rs/pcs) 34 Garments S.P. (Rs./pc) USD 5.25* * The average price of the garments is USD 5.25.…
CHALLENGES FACED BY TEXTILE INDUSTRY IN INDIA: The challenges or problems faced by different textile industries in India are: 1) Cotton industry: a) Cotton production in India is uncertain. It fluctuates depending on weather conditions. This makes the raw material supply irregular. b) Cotton produced in India is not of fine quality.…