ACC3AUD ASSIGNMENT.docx - ACC3AUD ASSIGNMENT AUDIT RISK AND PLANNING Table Of Contents Executive Summary 3 Overview of Billabong International Limited

ACC3AUD ASSIGNMENT.docx - ACC3AUD ASSIGNMENT AUDIT RISK AND...

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ACC3AUD ASSIGNMENT AUDIT RISK AND PLANNING
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Table Of Contents Executive Summary ……………………………………………………… 3 Overview of Billabong International Limited and its recent developments ……………………………………………... 4 Significant business and audit risks for Billabong International Limited ………………………………………… 5 - Inherit Risk ……………………………………………………... 5 - Control Risk …………………………………………………….. 6 - Detection Risk …………………………………………………... 6 - Completeness of liabilities ……………………………………... 7 - Completeness of revenue ……………………………………… 7 Ratio Calculations and comparisons …………………………………... 8 - Current Ratio ………………………………………………….. 8 - Debt-to-equity Ratio …………………………………………… 8 - Gross Profit Margin …………………………………………… 9 - Inventory Turnover …………………………………………… 9 - Trade receivables Turnover …………………………………. 10 Material misstatements …………………… ........................................... 10 Going concern ………………………………………………………….. 11 Social responsibility ................................................................................ 12 Conclusion ……………………………………. ………………………..14 References ……………………………………………………………… 15 2
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Executive Summary Billabong Limited International (Billabong) is a surf company that produces clothing as well as accessories for both summer and winter activities. The following report has been prepared by La Trobe Partners with the firm auditing Billabong for the first time. The report assesses and discloses the companies business and industry, the significant business and audit risks and comparable ratio calculations for the years 2015 and 2016. It also includes and overview on material misstatement, the going concern of Billabong and their social responsibility. This report finds the business is subjected to inherent, control and detection risk while also being exposed to completeness of liability and revenue risks. The ratio calculations reveal the company is operating steadily and just below or above industry benchmarks in some aspects however could find improvement and increase their competitiveness in their industry. It also reveals the going concern and its related issues that could be assessed for future operation while showing that Billabong Limited International adopts a triple bottom line method, complying with social responsibility and environmental accountability.
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  • Balance Sheet, The Land, Generally Accepted Accounting Principles, Financial audit, Billabong International Limited

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