Buffalo Wild Wings, Inc. owns and operates more than 550 Buffalo Wild Wings, R Taco, and PizzaRev restaurants. Additionally, the corporation has franchised restaurants in both the United States and Canada. The corporation takes internal control responsibilities very seriously and in 2015 conducted an assessment of the effectiveness of its internal controls over financial reporting.
Buffalo WildWings, Inc.'s 2015 annual report can be found at:
(https://www.sec.gov/Archives/edgar/data/1062449/000106244916000052/bwld2015122710-k.htm).
Requirements
1. Review Item 9a (Controls and Procedures) of the Notes to the Financial Statements. What was the material weakness in internal controls that Buffalo Wild Wings discovered when the company conducted its assessment?
2. Review the auditor's report over internal controls (p. 66 of the annual report). What did the auditor have to say about the company's internal controls?
3. What remedial measures does the company plan to take in order to correct the weaknesses in internal control?