Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Zoot Ltd is a national fashion retail chain with stores located throughout New Zealand. The company specialises in expensive womens summer wear. Garments are designed

Zoot Ltd is a national fashion retail chain with stores located throughout New Zealand. The company specialises in expensive women’s summer wear. Garments are designed in New Zealand and manufactured in China, using European-sourced fabrics. The availability of competitor products on low-price internet shopping sites, combined with a strong New Zealand dollar, have resulted in several fashion companies closing down. In preparation for the current year audit, you have ascertained the following information from a phone call to the financial manager: 1. There has been considerable staff turnover in the accounts payable department, including the resignation of the accounts payable manager early in the year. This has caused some delays in processing payments. 2. The company will be switching to a new accounting software system two months before year end. Required: a) Identify and explain three industry specific factors that are important to properly understanding Zoot Ltd and its environment and assessing risk. b) Briefly explain how matters 1 and 2 above will affect your overall planning of the audit.

Step by Step Solution

3.44 Rating (160 Votes )

There are 3 Steps involved in it

Step: 1

a The question requires you to identify three industry specific factors important to understanding Zoot Ltd and explain considering its environment while assessing riskIn this case Zoot Ltd is a fashi... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managers and the Legal Environment Strategies for the 21st Century

Authors: Constance E Bagley, Diane W Savage

6th Edition

978-1439033814, 1439033811, 324582048, 978-0324582048

More Books

Students also viewed these Business Communication questions

Question

Does positivity have a place in the workplace? Explain.

Answered: 1 week ago

Question

1. What does dorsal mean, and what is its oppositepg78

Answered: 1 week ago