Case Analysis : Jack Greenberg

822 Words Jul 26th, 2015 4 Pages
In this case summary of Jack Greenberg, Incorporated I would like to compliment Sherri Melsha on a job well done. In my opinion the case summary gave very good detail of understanding as to what this case was about. Sherri answers to each question thoroughly and she used relevant sources to support her answers. Below I added additional comments that I thought would be helpful and that the class may benefit from.

1. Identify important audit risk factors common to family-owned businesses. How should auditors address these risk factors?
I would like to add, that another risk factor for small business owners is that they may have is limited resources that cause them to hire low-cost independent auditor’s that may also serve as their business advisor. I cases such as this the auditors and clients sometimes build close relationships and those relationships may interfere with the auditor been objective in their decision making (Todd, 1990).

2. In your opinion, what primary audit objectives should Grant Thornton have established for JGI’s (a) Prepaid Inventory account and (b) Merchandise Inventory account?
I agree with your answer to this question. I also read this article that states exactly what you have already said and I would just like to add this information I read at the AICPA site. That family owned businesses are not focused on taking the business to the next level. They do not implement strategies to establish for longevity of the business; they operate in the right…
Open Document