What Is Hampton Creek's Independent Financial-Statement Auditors?

ACCY 504

KANGZHUO ZHENG

EBS (entity business states) are the entity’s business strategies, conditions, and processes and economic actions or events and relationships with other entities such as competitors and alliance partners and its economic web. MII are transforming information intermediaries such as internal control frameworks (including oversight by corporate governors) and applicable financial reporting, computer networks and information systems, documentation (e.g., invoices), people and policies. MBR (management business representations) are management’s representations of selected EBS within accounting journals or ledgers, conference calls, financial statements (including footnotes), interviews, MD&A, presentations, and press releases.

I would like to identify following sources of evidence of / from EBS, MII, and MBR that I would obtain to help my triangulate evidence to verify their sales revenues (forecast to be $28 million), as well as its asserted valuation of $77,000 in expenses related to a buyback program for quality-control.

• EBS

1. Find the selling data of Hampton Creek’s competitors such as Uniliver’s Helimann’s and Best Foods brands. Assuming the market is stable, I can find out the real selling of Hampton Creek’s products by finding out the decrease of competitors’ selling. And then I can estimate the real number of buybacks.

2. Looking for Hampton Creek’s operational performance measures such as units sold per kind of product per month over several years and across regions.

• MII

1. the operating effectiveness of MII of Hampton Creek that transform selected EBS germane to financial reporting would be audit evidence.

2. Find out the degree to which Hampton Creek’s managements’ financial statement assertions represent selected EBS in accordance with the applicable financial reporting framework.

• MBR

Hampton Creek’s earned and unearned revenue from selling