Martha Stewart Living Omnimedia
Martha Steward Living Omnimedia Inc.
Case Discussion Questions
1. Provide a concise company profile. (I.e., what does your client do to stay in business? What industry is your client in?)
Martha Stewart Living Omnimedia, Inc. creates original how-to content and related products for homemakers and other consumers. The Company markets its brand name across a broad range of media and retail outlets. Martha Stewart provides information on a variety of subjects including home, cooking and entertaining, gardening, crafts, holidays, household maintenance, and weddings (Bloomberg.com, 9/28/11). Martha Stewart Omnimedia utilizes the television to communicate its products, which include a variety of shows, for example a living show and a cooking …show more content…
What recommendations would you make to your client as a business advisor to assist your client in reducing its risks?
I would recommend the company identify all different segments of its business model to identify the segments which are the most profitable, and the segments which are continuing to suffer losses every year. Once this analysis is done, the company can devote more time and resources to the segments which have a brighter future for the company. The company faces continued pressure from economic events drilling down to tightening margins, I would recommend the company continue to seek and search for the next profitable business opportunity while reducing its capital expenditures and operational expenditures as necessary. Also,
5. Audit risk (at account level); List two accounts that you would devote extra audit time to. Why?
As an auditor I would devote time to these two accounts:
1. Gross Revenue- The company enacted (“FASB”) Update (“ASU”) 09-13 to account for certain arrangements containing multiple deliverables on January 1st, 2010. Since this is a new adoption for the year, as an auditor I would want to ensure the adoption of such new standard was done effectively without any material error in the accounting
Case Discussion Questions
1. Provide a concise company profile. (I.e., what does your client do to stay in business? What industry is your client in?)
Martha Stewart Living Omnimedia, Inc. creates original how-to content and related products for homemakers and other consumers. The Company markets its brand name across a broad range of media and retail outlets. Martha Stewart provides information on a variety of subjects including home, cooking and entertaining, gardening, crafts, holidays, household maintenance, and weddings (Bloomberg.com, 9/28/11). Martha Stewart Omnimedia utilizes the television to communicate its products, which include a variety of shows, for example a living show and a cooking …show more content…
What recommendations would you make to your client as a business advisor to assist your client in reducing its risks?
I would recommend the company identify all different segments of its business model to identify the segments which are the most profitable, and the segments which are continuing to suffer losses every year. Once this analysis is done, the company can devote more time and resources to the segments which have a brighter future for the company. The company faces continued pressure from economic events drilling down to tightening margins, I would recommend the company continue to seek and search for the next profitable business opportunity while reducing its capital expenditures and operational expenditures as necessary. Also,
5. Audit risk (at account level); List two accounts that you would devote extra audit time to. Why?
As an auditor I would devote time to these two accounts:
1. Gross Revenue- The company enacted (“FASB”) Update (“ASU”) 09-13 to account for certain arrangements containing multiple deliverables on January 1st, 2010. Since this is a new adoption for the year, as an auditor I would want to ensure the adoption of such new standard was done effectively without any material error in the accounting