Allbirds Company Info
Main Allbirds Product
Shoes
The definition of asset groups
Unit of account for long-lived assets
Auditor must always have . . .
professional skepticism
Were MW's identified
No
Assets Equal
Liabilities + Stockholders Equity
Allbirds Creation Date
2016
Main risk of triggering events
The failure to identify when a triggering event has taken place
Substantive Approach #1 for auditing estimates
Test the company's process to develop estimate
Main thing to look for when auditing internal controls
Look for consistency
Professor Bartula's favorite fish
COD fish
Specific type of corporation that Allbirds is
Public Benefit Corporation
Potential Triggering Event (at least 1)
Decline in market price, Change in condition, Early disposal
Substantive Approach #2 for auditing estimates
Develop auditor's own expectation & compare
Tests of Internal Controls over financial reporting (at least 1)
Walkthrough of Internal Controls
Inquiry and Observation
Examination of Documentation
Policies and Procedures
Professor Tarrant's favorite singer
Whitney Houston
Allbirds Focus
Minimizing their carbon footprint
Biggest Risk when it comes to inputs
Market growth rates
Substantive Approach #3 for auditing estimates
Evaluate subsequent events/transactions
A must for Management's control environment
Approach from an estimates perspective
Our team name
Accrual World
Their shoes are made of this material
Merino Wool
Leads to impairment
Fair Value < Net Book Value
Auditors solution to communication problems
Get all parties on the same call
Considerations from 10-K Notes on Internal Control (at least 2)
Future Risk of Weaknesses
Impact: Financial Reporting
Consequences: Ineffective Controls
Regulatory Risks
The PCAOB Assertions (all of them)
Completeness, Existence/Occurrence, Cutoff, Accuracy/Allocation/Valuation, Obligations/Rights