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North Face Inc Case Study Essay

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Tiffany Hale


Unit 2 Case Study

North Face Inc. Case Study

1. Should auditors insist that their clients accept all proposed audit adjustments, even those that have an “immaterial” effect on the given set of financial statements? Defend your answer.

When it comes to immaterial effect on a set of financial statements I would say that clients should not accept all proposed audit adjustments. By clients not accepting all proposed audit adjustments, auditors are forced to determine the aggregate basis the impact of a proposed or passed audit adjustment that might occur on a client’s financial statement. A client may disagree with the need for a given adjustment.

2. Should auditors take explicit measures to prevent their clients from discovering or becoming aware of the materiality thresholds used on individual audit engagements? Would it be feasible for audi...

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