Calculate the Starbucks' trend in Advertising, Promotional and Selling Expenses, COGS, Net profit, and General and admin expense for the years 2015, 2016 & 2017. What audit risks would be associated with the below picture:
Overall Base Year Percentage Percentage Percentage Financial Performance Dollar Amount Change 2015- Change 2016- 2016 Change 2015 2017 2015-2017 Risk Assessment Questions Calculate the Company's trend in Revenue for the years 2015, 2016 & 2017. 19,162.7 11 .24% 5.02% 16.82% AU-C 240 the Fraud Standard requires that the auditor assume the risk of overstatement due to fraud is high.. Discuss why there would be incentives or pressures for the Company to fraudulently overstate its revenue NA NA NA NA AU-C 240 the Fraud Standard requires that the auditor assume the risk of revenue overstatement due to fraud is high. Discuss four ways the Company could fraudulently overstate its revenue NA NA NA NA Calculate the trend in Cost of Goods Sold for the years 2015, 2016 & 2017.7,787.5 9.29% 6.19% 16.06% Calculate the trend in Gross Profit for the years 2015, 2016 & 2017 11,375.2 12.57% 4.25% 17.35% Calculate the Company's trend in Advertising, Promotional and Selling Expenses for the years 2015, 2016 & 2017 227.9 9.08% 13.68% 24.00% Calculate the Company's trend in General and Administrative Expenses for the years 2015, 2016 & 2017 1,196.7 13.70% 2.40% 16.43% Calculate the trend in Net Profit for the years 2015, 2016 & 2017 2,759.3 2. 16% 2.34% 4.55% Overall Base Year Percentage Percentage Percentage Financial Performance Dollar Amount Change 2015- Change 2016- 2016 Change 2015 2017 2015-2017 Risk Assessment Questions Calculate the Company's trend in Revenue for the years 2015, 2016 & 2017. 19,162.7 11 .24% 5.02% 16.82% AU-C 240 the Fraud Standard requires that the auditor assume the risk of overstatement due to fraud is high.. Discuss why there would be incentives or pressures for the Company to fraudulently overstate its revenue NA NA NA NA AU-C 240 the Fraud Standard requires that the auditor assume the risk of revenue overstatement due to fraud is high. Discuss four ways the Company could fraudulently overstate its revenue NA NA NA NA Calculate the trend in Cost of Goods Sold for the years 2015, 2016 & 2017.7,787.5 9.29% 6.19% 16.06% Calculate the trend in Gross Profit for the years 2015, 2016 & 2017 11,375.2 12.57% 4.25% 17.35% Calculate the Company's trend in Advertising, Promotional and Selling Expenses for the years 2015, 2016 & 2017 227.9 9.08% 13.68% 24.00% Calculate the Company's trend in General and Administrative Expenses for the years 2015, 2016 & 2017 1,196.7 13.70% 2.40% 16.43% Calculate the trend in Net Profit for the years 2015, 2016 & 2017 2,759.3 2. 16% 2.34% 4.55%
