The formulation of the present report is done as an audit for checking the existing materiality in the accounts of a client of W&S Partners- Cloud9. This Sydney-based company was founded by Ron McLellan, originally in 1980, involved in manufacturing and retailing of customised basketball shoes. Discovering the inherent risks which are likely to affect the reliability of the financial report, is the main purpose of this materiality survey. The audit also aimed at gaining a thorough understanding of the Cloud 9’s financial structure and its business environment. For the purpose of assessing the materiality, the account balances are used as a basis for the review of material misstatement. A blended approach of all the benchmarks has been used to calculate material misstatement. An analysis of the financial position and business risk involved has also been reflected in the report through the presentation of common size balance sheet. This has made the comparison and analysis of accounts easier and effective.
Cloud9 is a Sydney-based company which was founded by Ron McLellan, in 1980. The company’s range of operations included manufacturing and retailing of customised basketball shoes. Cloud 9 Inc., is a parent company and has wholly-owned subsidiaries in various countries including UK, Canada, Germany, Brazil and China. A renowned image has been established by the company in manufacturing shoes which have excellent comfort and durability. The stocks of Cloud 9 Pty Ltd are acquired majorly from its China production plant, and the remaining shoes are developed in the manufacturing plant of United States.
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