RSM323H1 Lecture Notes - Lecture 5: Financial Statement, Good Governance
Document Summary
You are an audit manager for big boldov and best (b3) assigned to audit java stop, limited (jsl). Jsl operates a chain of coffee shops in the metropolitan area. They are owned as a cooperative and got their start as an outlet for fair-trade coffee. Fair trade means the coffee farmer is paid more than if they sold their coffee on the open market. The expectation is that the extra money will help the farmer"s community improve economically. The major national and international coffee shops also stock fair trade coffee, but only as a specialty. Nonetheless, jsl has been able to compete on price and has managed to open 23 locations. Part of the reason is that they have partnered with social agencies to provide employment for developmentally handicapped or other underemployed people. This has kept their labour costs low as a result of government subsidies.
