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Health Analysis Of Chick-fil-A Food Chain | Report
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Added on 2019-09-23
Health Analysis Of Chick-fil-A Food Chain | Report
Added on 2019-09-23
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AuditingTable of ContentsDescription and history of the company................................................................................................1The statement that the potential client should or should not be accepted..........................................1Company and industry description........................................................................................................2The independent status of Board of Directors......................................................................................2Independence of Audit Committee.......................................................................................................2Filling of 8K............................................................................................................................................2Ratio Analysis........................................................................................................................................3Conclusion.............................................................................................................................................3References........................................................................................................................................4
Audit Risk Analysis of Chick-fil-ADescription and history of the companyChick-fil-A is an American fast food chain of restaurants which has around 2200 restaurants in different parts of the United States. The company was founded in the year1946 and is well known for chicken sandwiches. According to the data collected in 2018, it is the third largest fast food restaurant chain after Wendy's and McDonald's. The company was also recognized as "Top Chicken Restaurant Brand" of America in 2015. The company was founded by Dwarf House through a diner called The Dwarf Grill in the Atlanta suburb. Though the years, the restaurant gained success through its specialized chicken products. The founders of the company conducted business based on customer-centric decisions and taking care of the employees of the company (García Blandón & Argilés Bosch, 2013).The statement that the potential client should or shouldnot be acceptedBeing the audit manager of the public accounting firm, it is our responsibility to access the audit client before they are accepted. It is required in order to ensure that no such audit client is accepted for which our organization does not have the requisite manpower, knowledge or expertise.For the reasons given below, I recommend that Chick-fil-A should be accepted as an audit client:As the fast food industry is one of the growing industry, there is a huge amount of data available which can be used for reviewing the performance of the company and conducting an audit.The audit committee of the company is an independent body which can help provide the necessary information required for conducting the audit.Securities and Exchange Commission provide sufficient guidelines which can be used for auditing the financial reports of the company (Mohseni, 2014).As the company prepares and presents its financial statements according to GAAP principles,it is easier to review and build an opinion on such financial reports. As the fast food industry is one of the competitive industry with a large number of competitors, it is easier to compare the financial position of the company with other companies in the industry.The audit regulatory body provides sufficient procedures and policies about conducting the audit of such organization.As the board members, both independent and dependent are from a high successful background, they are expected to provide all the necessary information required to conduct an audit independently.Thus the expertise held by our firm would be adequate and sufficient to conduct the audit review of the financial reports of the company. These financial statements can be reviewed for providing an opinion upon the fairness of the reports to the users and SEC. However, some of the key auditor's concern which should be reviewed are as follows:
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