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I just need help with A & B on part two.

ud 9 - Continuing Case clo Gain an understanding of the client the planning phase of the Cloud 9 audit. As assessment phase for the new audit, the audit ure and its t, determine materiality, and assess inherent 1. What is the effect on the client of potential new entrants into the market? Are there any significant barriers to entering the partners t n an understanding of Cloud 9's struct unders team needs to gain teanhess environme Product information team in developing an audit strategy and n. Is the product depen m. Is there a specific lifecycle for the product? ture, extent, and timing of audit procedures. Customer information equ the following questions based on the additional infor AnsrtCloud 9 presented in the appendix to this book and the re specific customers on whom the client is highly ma- ters. You should also consider your an- You nt and earlier P. What is the overall profile of the client's customers? Have there case study questions in earlier chapters where relevant. to research the retail and wholesale footwear indus t back to the audit team. Your report will form part of understanding of Cloud 9's structure and its environment ould concentrate your research on providing find ose areas that have a financial reporting impact and been significant fluctuations in the client's customer base? Supplier information g. Who are the key suppliers? r. Are the materials subject to significant price movements or the ings from th influenced by external market forces? sidered probable given Cloud 9' s operations. In conduct- Technological advances and the effect of the internet h, you should consider the following key market d industry-specific economic trends and conditions iness affected by developments in other countries dustry is labor intensive, are there unusual or unique s. How does the industry use technology? t. What technological trends are impacting the industry? forces, as they relate to Cloud 9's operations. General and a. What is the current condition of the economy? b. Is the bus Laws and regulatory requirements u. Are the client's operations affected significantly by local or foreign legislation? What new laws and regulations recently enacted (or pending) may have significant effects on the company? foreign currency fluctuations, or other global forces? v. c. If the in labor relations issues? d. How does the company's growth and overall financial perfor mance compare with the industry, and what are the reason PART 2 Analytical procedures for any significant differences? e. What are the volume and type of transactions in the business? Is the client's business cyclical in nature or influenced by sea h. What is the susceptibility to fraud/theft? (Is the product Answer the following questions based on the information pre sented for Cloud 9 in the appendix to this book and the current and earlier chapters. You should also consider your answers to the case study questions in earlier chapters. f. Are the client's operations centralized or decentralized? sonal fluctuations in the market? a. Using analytical procedures and the information provided in the appendix, perform an analysis of Cloud 9's financial position and its business risks. Discuss the ratios indicating a significant or an unexpected fluctuation. something that can easily be stolen and has a sale market?) Competitive environment i. What products does the client sell, and have there been signif b. Which specific areas do you believe should receive special icant changes with respect to i. major products or brands? emphasis during your audit? Consider your discussion of the analytical procedures results as well as your prelim inary estimate of materiality. Prepare a memorandum to Suzie Pickering outlining potential problem areas (that is, where possible material misstatements in the financial statements exist) and any other special concerns. Spec ify the accounts and related assertions that would require particular attention se sales/gross margin by product? j. Who are the client's major competitors, and what share of the market does each hold? k. Is there significant differentiation between the client's and competitors' merchandise? ud 9 - Continuing Case clo Gain an understanding of the client the planning phase of the Cloud 9 audit. As assessment phase for the new audit, the audit ure and its t, determine materiality, and assess inherent 1. What is the effect on the client of potential new entrants into the market? Are there any significant barriers to entering the partners t n an understanding of Cloud 9's struct unders team needs to gain teanhess environme Product information team in developing an audit strategy and n. Is the product depen m. Is there a specific lifecycle for the product? ture, extent, and timing of audit procedures. Customer information equ the following questions based on the additional infor AnsrtCloud 9 presented in the appendix to this book and the re specific customers on whom the client is highly ma- ters. You should also consider your an- You nt and earlier P. What is the overall profile of the client's customers? Have there case study questions in earlier chapters where relevant. to research the retail and wholesale footwear indus t back to the audit team. Your report will form part of understanding of Cloud 9's structure and its environment ould concentrate your research on providing find ose areas that have a financial reporting impact and been significant fluctuations in the client's customer base? Supplier information g. Who are the key suppliers? r. Are the materials subject to significant price movements or the ings from th influenced by external market forces? sidered probable given Cloud 9' s operations. In conduct- Technological advances and the effect of the internet h, you should consider the following key market d industry-specific economic trends and conditions iness affected by developments in other countries dustry is labor intensive, are there unusual or unique s. How does the industry use technology? t. What technological trends are impacting the industry? forces, as they relate to Cloud 9's operations. General and a. What is the current condition of the economy? b. Is the bus Laws and regulatory requirements u. Are the client's operations affected significantly by local or foreign legislation? What new laws and regulations recently enacted (or pending) may have significant effects on the company? foreign currency fluctuations, or other global forces? v. c. If the in labor relations issues? d. How does the company's growth and overall financial perfor mance compare with the industry, and what are the reason PART 2 Analytical procedures for any significant differences? e. What are the volume and type of transactions in the business? Is the client's business cyclical in nature or influenced by sea h. What is the susceptibility to fraud/theft? (Is the product Answer the following questions based on the information pre sented for Cloud 9 in the appendix to this book and the current and earlier chapters. You should also consider your answers to the case study questions in earlier chapters. f. Are the client's operations centralized or decentralized? sonal fluctuations in the market? a. Using analytical procedures and the information provided in the appendix, perform an analysis of Cloud 9's financial position and its business risks. Discuss the ratios indicating a significant or an unexpected fluctuation. something that can easily be stolen and has a sale market?) Competitive environment i. What products does the client sell, and have there been signif b. Which specific areas do you believe should receive special icant changes with respect to i. major products or brands? emphasis during your audit? Consider your discussion of the analytical procedures results as well as your prelim inary estimate of materiality. Prepare a memorandum to Suzie Pickering outlining potential problem areas (that is, where possible material misstatements in the financial statements exist) and any other special concerns. Spec ify the accounts and related assertions that would require particular attention se sales/gross margin by product? j. Who are the client's major competitors, and what share of the market does each hold? k. Is there significant differentiation between the client's and competitors' merchandise

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