The Leslie Fay Companies Knapp Case 1. The financial statement items that I believe should have been particular interest to BDO Seidman are the inventory primarily and then the sales. BDO Seidman should have noticed that according the ratios‚ the sales were at a steady rate until the year 1991. The inventory of the company was also having issues with sales due to Leslie Fay not keeping up with the latest fashions and because of a slight recession. According to the ratios and common size statement
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letters from Aunt Fay to her niece Alice who is currently studying English Literature at college. Alice has been told to read Jane Austen but thinks that Austen is “boring‚ petty and irrelevant” (Letters to Alice‚ Page 7). Aunt Fay attempts to convince Alice to read Jane Austen by talking about the life and work of Jane Austen‚ and tries to explain Literature to Alice. She encourages Alice to put off writing her own novel until she is more familiar with proper Literature. Aunt Fay then creates the
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WW2 weapons from the ETO / Warfare History The best American Infantry weapon had to be the M1 Garand. Even General Patton credited the American semi-automatic rifle as one reason we won the war. While other nations were equipped primarily with WWI vintage bolt action rifles that held no more than 5-6 rounds‚ the Garand held 10 rounds and was semi automatic. This increased the fire power of a 12 man squad dramatically over that of a similar squad armed with only bolt action rifles. The Germans
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Leslie Fay Companies Paul Polishan apparently dominated Leslie Fay ’s accounting and financial reporting functions and the individuals who were his subordinates. What implications do such circumstances pose for a company ’s independent auditors? How should auditors take such circumstances into consideration when planning an audit? My question for the Leslie Fay Companies case focuses on the actions of Paul Polishan and the effect his self-established tyranny over the financial information
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The Leslie Fay Companies‚ which is a manufacturer of women’s apparel‚ was founded by Fred Pomerantz. The company is based out of New York‚ and Fred Pomerantz made the company public in 1952. However‚ Fred Pomerantz ended up taking the company back to a private entity for a few years in the 1980’s due to a buy out from his son John Pomerantz. The Leslie Fay Companies became public again in 1986. After John Pomerantz had taken over the company‚ profits started skyrocketing even though the
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2004). The financial ratios are then compared with the entity ’s ratios for prior periods as well as with ratios for other businesses in the same industry. A comparison with the industry ratios would have warned BDO of some irregularities in Leslie Fay ’s financial statements. BDO Seidman should have been interested some important ratios that would help in determining the accuracy of the financial statements that had been prepared by Polishan and his staff. The important ratios include the liquidity
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Leslie Fay Case 1. After reviewing the common size financial statements and the key ratios of Leslie Fay‚ there some of the financial statement item that should have been of particular interest to BDO Seidman: 1).Sales: the sales has been growing steadily except the slight drop in 1991‚ which is contrary to the industry recession. 2). Inventory: Leslie Fay has been known for not catching up the fashion‚ there should be inventory write-off issue in the apparel industry‚ which haven’t been reflected
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Background The Leslie Fay Companies was a women’s apparel manufacturer established by Fred Pomerantz‚ a former Women’s Army Corps uniform maker during World War II. Despite the “volatile and intensely competitive” (Knapp 34) nature of the industry‚ Leslie Fay grew to have the second largest annual sales compared to any of the other publicly owned women’s apparel manufacturers‚ only behind Liz Claiborne. Fred Pomerantz hired Paul Polishan for a position in the accounting department where Polishan
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fairly‚ and that is what happened when Michael Fay was caned and imprisoned. Michael Fay deserved to be punished for vandalism because he had to be responsible for his actions. He also needed to be taught a lesson‚ and since he is living in Singapore‚ he should have abided by their laws. People who commit crimes should not get off on just a fancy argument. Being responsible for one’s actions is a quality that everyone wants from each other. Michael Fay should be responsible for vandalizing eighteen
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Anybody can claim they don’t have biases against a certain group or side in an argument or conflict. James Weldon Johnson presented his 1912 novel‚ The Autobiography of an Ex-Colored Man‚ as a balanced view of both races (black and white). However‚ what authors thought of as unbiased or not-racist back then (post-civil war to pre-MLK jr.) could differ greatly with what people think now in much more advanced societies. For instance‚ Mark Twain’s The Adventures of Huckleberry Finn (released a mere
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