Auditing Analysis - Krispy Kreme Doughnuts

MEMOTo : Engagement PartnerFrom : Audit ManagerDate : 26th April 2007Subject : Assessment of Krispy Kreme Doughnuts Incorporation1 .1 History and Products of Krispy Kreme Doughnuts IncorporationKrispy Kreme was founded by Vernon Rudolph in Marshall County and originally commenced with a doughnut pay off , a pack of cig arttes and a dream . Even though from its creation the home has frequently encountered business hardships due to sparing and competitive conditions , they still manage to enter the market and cause a good reputation . Indeed in 1949 a laboratory was created in to resurrect ingathering originality and quality (Arai J . et al . 2004Krispy Kreme is a leading corporation engaged in the wholesaling and retailing of high quality doughnuts . From its inception in 1937 to date the shaping have always strived to provide a potpourri of doughnuts to meet all the wants of its tar shorten invitees . Presently oer 20 varieties be being marketed . A number of drunkenness programs , homogeneous different kinds of coffee , where introduced in the crop sick of the troupe to complement the original good marketed . The principal of import dissemination channels through which sales tax is generated ar the follow Stores , Franchise Fees and a number of add up custody accomplish through vertical integration (Securities study ,3-4The firm s model forth ar twain a manuf portrayaluring set up as healthful as retail forthlets , on which on-premises family sales are generated . Management has also developed a number of dispersal channels , like convenience stores , groceries and much , through which off-premises company sales are attained (Securities instruction ,3Long ago the organization has noted a key managerial technique in which they can think globally and act locally . In this respect a number of franchising agr! eements had been set in to stretch forth the market of the firm and enhance the revenue growth . A vertical integration of supply chains was also carried out , managed under KK Supply manacles . KK Supply Chain start up sales revenue from sale of doughnut mixes , equipment and coffee to franchisees and attains both the firm and the same franchisees via product knowledge and technical development , together with arrogate control on critical end product and distribution processes (Securities Information ,4Principle Officers of Krispy Kreme DoughnutsThe main officers of the organization are (Securities Information ,br 124James H . Morgan - Chairperson of board of directorsDaryl G . Brewster - Chief administrator OfficerMichael C . Phalen - Chief Financial OfficerDouglas R . Muir - Chief news proclaim OfficerCharles A . Blixt - DirectorRobert S . McCoy Jr . - DirectorAndrew J . Schindler - Director1 .2 Audit RisksThere are a number of audit risks that ought to be considered before accepting this customer . These are explained in the sub-sections below1 .2 .1 Adhering to Relevant LegislationsThe products marketed by Krispy Kreme Doughnuts Incorporation are undecided to food product regulation . For instance product weight packaging , content and other factors are periodically investigated to ensure compliance . It has been noted that presently the corporation is sketch to governmental investigations for a number of incidents . For example , on...If you want to get a full essay, order it on our website: BestEssayCheap.com

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