Homework 4 - Homework 4 Bruno Drinks Inc(A Business Risk...

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Homework 4. Bruno Drinks Inc. (A Business Risk Case, modified based on an ACCA exam question) You are a senior auditor at Zales and Brook LLP, a CPA firm. Bruno Drinks Inc. is a large publicly traded firm based in California and has been audited by your firm for years. You are assigned to lead the FY2007 audit of Bruno Drinks (DB). You read previous year working papers, BD’s quarterly reports and have learned the following facts. BD is a large multinational non-alcoholic drink producer, selling bottled water, juice drinks, and other soft drinks in Canada, U.S., Mexico, and UK. Mexico, a growing market with a large population, accounts for 35% of the total sales and Canada accounts for roughly 25%. UK is a minor market for BD and accounts for only 10% of the firm’s total revenue. It has its own Bruno brand, but sells most of its products (90%) to retailers under their private labels. Between 2002 and 2005, BD expanded its production and distribution capacities through several acquisitions. In 2006, after the retirement of the previous CEO, Jack London was picked by the board of directors to be the new CEO. Jack soon adopted a new strategy of rationalizing its existing
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  • Fall '15
  • bd, Bruno Drinks Inc.

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