Auditors in the retail sector have revealed insights from their audits of the UK retail sector for the first time.
They have issued a stern warning urging retailers against reliance on like-for-like sales data. Auditors in the sector have said that reliance on these figures is not always consistent and can sometimes not be directly linked to profitability.
The retail report from the ICAEW’s Audit and Assurance facility flags up three other areas which are considered a risk from an auditors viewpoint.
- Underdeveloped IT and data management systems.
- The impact the changing retail landscape has on the value of store sales compared to online.
- A lack of consistency in key performance indicators.
The report is the first in a series of sector-specific reports to be published in 2013, aimed at making the expertise and insights of auditors – gained through their unique view of businesses of all types and sizes – available more widely without compromising client confidentiality.
It summarises key issues auditors have identified and reported back on to audit committees and senior management in a way that has not been done before.
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