Auditing requires enough time and thus fixing time within the company’s busy schedule may delay the process. Finally in a high competition industry, determining inherent risk is important since there are higher complex valuation issues and thus more experienced staffing is needed. This will affect the client in the sense that the cost of increased staffing digs into the company’s profit margins which are minimal in such an industry.
The year 1998 was faced with allegation from the delloitte auditors on misappropriation of the audit results due to the wrong facts provided by the vice president of Just for Feet. Below are the risk factors that are likely to have affected the company.
The affected parties here were Just for Feet, Logo Athletics, Reebok and Deloitte Being in Thomas Shine’s position; working related ethics did not allow him to engage in such a fraudulent conversion with Don Allen Ruttenberg. The wise decision here was to ask Ruttenberg to organize a conference where the executives of the vendor companies would decide and thus he would have avoided the ...Show more