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Provide an overview of the clients business

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Reference no: EM131647523

Billabong International Limited

You are the audit senior assigned to the audit of Billabong International Limited (Billabong), a listed public company,for the year ended 30 June 2017.

As an audit senior, you have been assigned the task of gaining an understanding of the client, as well as identifying inherent risks and risk of material misstatements based on your research. The information you gather will be used to help plan the audit. You are required to write a report to your audit manager outlining the information you have gathered with regards to the following:

a. Provide an overview of the client's business, operations and industry(discussions should includeany recent events concerning the company.)

b. Refer to the annual reports for 2016 and 2015, and calculate the following ratiosfor 2016 and 2015.

Billabong - Clothing retail company annual reports

- look under "Preliminary Final Report and Full Year Statutory Accounts"& "Full Year Accounts to 30 June 2015"):

Ratios

Industry Averages

Current ratio

2:1

Debt to Equity

1:1

Gross profit margin

60%

Inventory turnover

4 times

Receivables turnover 

6 times

Based on your calculations and the industry averages given, comment on the client's ratios. Also comment on the company's losses and what impact this might have on the future of the company.

(Note: Comments for part b should take into consideration knowledge gained in part a)

c. Identify 5areas of business risks/audit risk for Billabong

d. Based on your analysis above (parts a, b & c), identify 5 areas of risk of material misstatement in the financial statements. (You will need to mention specific transaction/balance and assertions at risk and why you think these are risk areas).

Length and Format, should include:

1. A title page containing title of the assignment, name and student numbers of the group members

2. A table of contents

3. An executive summary

4. Word limit: 2000 words, Times New Roman size 12 font, double spacing.

5. Appropriate reference citations throughout the assignment are expected

6. Pages should be numbered

7. Reference list to be included

Verified Expert

Ratio analysis is concerned with the comparing of the performance of the company with the previous year. this assignment is all about laying down the retail business of the country and also the risks that the company under review is exposed to. also, since each company is exposed to an audit, it has some of the areas that have to be looked upon so that the audit risks could be minimized

Reference no: EM131647523

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inf1647523

11/27/2017 5:32:09 AM

Overall I am Highly satisfied by your service and planning to give you two more assignments within two days. I got very good response from the site and helped me a lot. Always rely on this site.

inf1647523

11/27/2017 5:31:45 AM

Please look in the assignment one is the assignment and the other is the marking criteria . if you know about this assignment let me know. Audit and Assurance Services, as Everything is define in group assignment file and what are aspects and requirement need to be covered in assignment all details about that is in making criteria file. please make very very sure of the quality and it should be according to the auditing procedures of AUSTRALIA. These are the technical terms from the annual report of the compAny

len1647523

9/18/2017 7:23:25 AM

Students must notify the Lecturer in a timely manner and provide substantiating documentation of any problems in relation to group work. This includes any member of the group not contributing to the team efforts. Assignments must be submitted with a Stott’s’ College cover sheet with sign-offs by each of the team members. Completed assignments are to be uploaded on Moodle. Students should retain both hard and electronic copies of all work submitted for assessment.

len1647523

9/18/2017 7:23:17 AM

This group assignment aims to: 1. Give students an understanding of real life auditing issues 2. Help students understand the link between theory and practice; and 3. Foster students’ research, team-working, critical analysis and written communication skills. Students are to form teams of up to four (4) members. You should give careful consideration to the selection of members comprising the group. All groups formed are to provide the names of members to the Lecturer. It is very important for all members to take an active part in completing the assignment and make an equal contribution.

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