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Health Analysis Of Chick-fil-A Food Chain | Report

Added on - 23 Sep 2019

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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 indifferent parts of the United States. The company was founded in the year1946 and is well knownfor chicken sandwiches. According to the data collected in 2018, it is the third largest fast foodrestaurant chain after Wendy's and McDonald's. The company was also recognized as "Top ChickenRestaurant Brand" of America in 2015.The company was founded by Dwarf House through a diner called The Dwarf Grill in the Atlantasuburb. 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 takingcare 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 auditclient before they are accepted. It is required in order to ensure that no such audit client is acceptedfor 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 dataavailable which can be used for reviewing the performance of the company and conductingan audit.The audit committee of the company is an independent body which can help provide thenecessary information required for conducting the audit.Securities and Exchange Commission provide sufficient guidelines which can be used forauditing 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 ofcompetitors, it is easier to compare the financial position of the company with othercompanies in the industry.The audit regulatory body provides sufficient procedures and policies about conducting theaudit of such organization.As the board members, both independent and dependent are from a high successfulbackground, they are expected to provide all the necessary information required to conductan audit independently.Thus the expertise held by our firm would be adequate and sufficient to conduct the auditreview of the financial reports of the company. These financial statements can be reviewed forproviding 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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