planning an Audit

I am creating an audit plan for an organization's financial statements based on a business objective( reducing delivery and distribution time of products and services by adding additional warehouse locations)

I have to address the following(1-5 below) from the financial statements and support each with appropriate auditing standards:

1.Business risks 2. Management assertions

3. Audit risk 4. Internal controls 5. Effect on audit procedures

below are the statements. not sure how to go about this.

Consolidated Statements of Comprehensive Income In thousands, except share data) For the period ended December 31 2015 2014 2013 $950,484 857,885 891,394 490,530 Net Sales Cost of sales 546,393 404,091 364,012 472,739 385,146 334,994 (1,153) 51,305 Gross Profit Selling, general, and administrative expenses Nonrecurring charge (credit) 400,864 353,890 8,190 Income from operations Other income (expense) 40,079 38,784 Interest expense Interest income Other (983) 1,459 (4,798) (1,229) (5,027) 57 3 (1,091) (1,747) 49,559 18,337 10 (1,593) 6,609 Total other income (expense), net (4,322) 35,757 13,230 Income before income taxes Income tax provision Net income Other comprehensive income: 32,175 11,905 $22,527 $31,222$20,270 733 733 $24,671 31,659 $21,003 Foreign currency translation adjustments 437 1,151) 3,295 2,144 Unrealized gain on forward contracts Other comprehensive income (loss), net of tax Comprehensive Income Net Income per Common Share: Basic earnings per share Diluted earnings per share Basic weighted average shares outstanding 437 1.15 1.14 19,531 1.60 1.56 19,555 1.02 1.01 19,806 19,996 Diluted weighted average shares outstanding 19,774 20,055 December 31 Assets 2015 2014 Current assets 48,978$49,668 11,539 105,425 10,772 3.780 6,930 Cash and cash equlvalents Recelvables, net Prepald advertising Other prepald expenses Deferred income tax benefits 12,875 122,337 11,458 6,315 7,132 Total current assets 209,095 188,115 Property, plant, and equipment, at cost Land and buildings Fixtures and equipment Computer hardware and software Lease 70,918 67,513 64,986 66,804 66,876 47,466 2,894 hold improvements 206,426 85,986 184,040 76,256 Total property, plant, and equipment Less accumulated depreclation and amortization Property, plant, and equipment, net Intangibles, net Total assets 120,440 107.784 628 $. 329,959 296,527 Liabilities and Stockholders' Equity Current liabilities: Lines of credit Accounts payable Reserve for returns Accrued liabilities Accrued profit sharing Income taxes payable $. 11,011 62,509 5,890 26,738 1,532 8,588 7,621 48,432 28,440 1,794 6,666 Total current lablities Deferred income taxes Stockholders' Equity: 116,268 98,067 9,469 5,926 261 5,460 20,740 (79) 3,883 317,907 (143,95o) Common stock, 26,121 shares issued Donated capital 261 5,460 19,311 Additional pald-in capital com 1,739 295,380 (129,462) 192,535 Accumulated other comprehensve income Retained earnings Treasury stock, 6,546 and 6706 shares at cost Total Stockholders' Equity 204,222 Total liabilities and Stockholders' Equity $329,959 296,527 Earth Wear EARTHWEAR CLOTHIERS Consolidated Statements of Stockholders' Equity In thousands) Other Common Paid-h Capital Compensation Deferred Retained Eamings Stock Capital Income Stock Total Balance, December 31, 2012 Purchase of treasury stock Issuance of treasury stock Tax benefit of stock $261 $5,460 $17,197 (681) $569 $243,888 ($108,931) $157,763 (23,112 (23,112) 1.199 1.199 349 options exercised Deferred compensation expense Net income Other Comprehensive Income 349 424 20,270 733 424 20,270 733 Balance, December 31, 2013 Purchase of treasury stock Issuance of treasury stock Tax benefit of stock 261 $5,460 $17,546 ($257) $1,302 $264,158 ($130,844) $ 157,626 (2,935) (2,935) 4,317 4,317 options exercised Deferred compensation expense Net income Other Comprehensive Income 1,765 1,765 103 31,222 437 103 31,222 437 Balance, December 31, 2014 $261 $5,460 $19,311 ($154) $ 1,739 $295,380 ($129,463) $ 192,534 Purchase of treasury stock Issuance of treasury stock Tax benefit of stock (18,192)(18,192) 3,704 3,704 1,429 1,429 options exercised Deferred compensation expense Net income Other Comprehensive Income 75 22,527 2,144 75 22,527 2,144 Balance, December 31, 2015 $261 $5,460 $20,740 79) $3,883 $317,907 ($143,950) $204,222 Consolidated Statements of Comprehensive Income In thousands, except share data) For the period ended December 31 2015 2014 2013 $950,484 857,885 891,394 490,530 Net Sales Cost of sales 546,393 404,091 364,012 472,739 385,146 334,994 (1,153) 51,305 Gross Profit Selling, general, and administrative expenses Nonrecurring charge (credit) 400,864 353,890 8,190 Income from operations Other income (expense) 40,079 38,784 Interest expense Interest income Other (983) 1,459 (4,798) (1,229) (5,027) 57 3 (1,091) (1,747) 49,559 18,337 10 (1,593) 6,609 Total other income (expense), net (4,322) 35,757 13,230 Income before income taxes Income tax provision Net income Other comprehensive income: 32,175 11,905 $22,527 $31,222$20,270 733 733 $24,671 31,659 $21,003 Foreign currency translation adjustments 437 1,151) 3,295 2,144 Unrealized gain on forward contracts Other comprehensive income (loss), net of tax Comprehensive Income Net Income per Common Share: Basic earnings per share Diluted earnings per share Basic weighted average shares outstanding 437 1.15 1.14 19,531 1.60 1.56 19,555 1.02 1.01 19,806 19,996 Diluted weighted average shares outstanding 19,774 20,055 December 31 Assets 2015 2014 Current assets 48,978$49,668 11,539 105,425 10,772 3.780 6,930 Cash and cash equlvalents Recelvables, net Prepald advertising Other prepald expenses Deferred income tax benefits 12,875 122,337 11,458 6,315 7,132 Total current assets 209,095 188,115 Property, plant, and equipment, at cost Land and buildings Fixtures and equipment Computer hardware and software Lease 70,918 67,513 64,986 66,804 66,876 47,466 2,894 hold improvements 206,426 85,986 184,040 76,256 Total property, plant, and equipment Less accumulated depreclation and amortization Property, plant, and equipment, net Intangibles, net Total assets 120,440 107.784 628 $. 329,959 296,527 Liabilities and Stockholders' Equity Current liabilities: Lines of credit Accounts payable Reserve for returns Accrued liabilities Accrued profit sharing Income taxes payable $. 11,011 62,509 5,890 26,738 1,532 8,588 7,621 48,432 28,440 1,794 6,666 Total current lablities Deferred income taxes Stockholders' Equity: 116,268 98,067 9,469 5,926 261 5,460 20,740 (79) 3,883 317,907 (143,95o) Common stock, 26,121 shares issued Donated capital 261 5,460 19,311 Additional pald-in capital com 1,739 295,380 (129,462) 192,535 Accumulated other comprehensve income Retained earnings Treasury stock, 6,546 and 6706 shares at cost Total Stockholders' Equity 204,222 Total liabilities and Stockholders' Equity $329,959 296,527 Earth Wear EARTHWEAR CLOTHIERS Consolidated Statements of Stockholders' Equity In thousands) Other Common Paid-h Capital Compensation Deferred Retained Eamings Stock Capital Income Stock Total Balance, December 31, 2012 Purchase of treasury stock Issuance of treasury stock Tax benefit of stock $261 $5,460 $17,197 (681) $569 $243,888 ($108,931) $157,763 (23,112 (23,112) 1.199 1.199 349 options exercised Deferred compensation expense Net income Other Comprehensive Income 349 424 20,270 733 424 20,270 733 Balance, December 31, 2013 Purchase of treasury stock Issuance of treasury stock Tax benefit of stock 261 $5,460 $17,546 ($257) $1,302 $264,158 ($130,844) $ 157,626 (2,935) (2,935) 4,317 4,317 options exercised Deferred compensation expense Net income Other Comprehensive Income 1,765 1,765 103 31,222 437 103 31,222 437 Balance, December 31, 2014 $261 $5,460 $19,311 ($154) $ 1,739 $295,380 ($129,463) $ 192,534 Purchase of treasury stock Issuance of treasury stock Tax benefit of stock (18,192)(18,192) 3,704 3,704 1,429 1,429 options exercised Deferred compensation expense Net income Other Comprehensive Income 75 22,527 2,144 75 22,527 2,144 Balance, December 31, 2015 $261 $5,460 $20,740 79) $3,883 $317,907 ($143,950) $204,222