Hannover House Inc (HHSE)

[nicmar]

gragatrim. Here's one guys experience of how long it takes to do an audit. Possibly tdgi's audit is more complicated. mo. nic

Back in the 80's when I worked for Gordon Jewelry Corp., at the Home Office in Houston, our company did its financial audit, which included a 600 chain inventory, in the summer. This process began on a Sunday morning in the stores, where all employees in the stores were expected to help count the entire stores inventory. That inventory was the responsibility of the Store Manager. He or she would sign off on the inventory and the results given to the District Manager who gathered all his districts inventory and sign off on it to the Regional Manager. The Regional Managers gather the Districts inventories and sign off to the Vice Presidents at the Corporate Home Office. The Vice Presidents signed off on the regions inventories to the Controller. ( Bottoms Up ) All of this process was also co-ordinated under the direction of Peat Marwick Mitchell & Company.

They turned in 600 stores, total inventory, by noon on Monday morning.

The Home Office inventory, which at the time we were bought out by Zale in June of 1989 contained over 100 million, at cost, of diamond product, gold product and watches.

On Monday morning, at the Home Office, each department was assigned an auditor from Peat Marwick Mitchell & Company. They would observe, not count, the counting of the inventory in each department. After it was completed, which took between a day to a day and a half, depending on the size of the department, a group of 3 auditors would come to your department and do random counts of your bins. If your counts matched their counts, you were cleared, if not, they had the authority to make you do partial or total recounts. I worked at the Corporate Home Office from 1981 through 1989 and participated in all 9 inventories and none of them took more than 2 full days.

This gives you an idea of what is involved in a chain stores inventory process. Now, the rest was done by Peat Marwick Mitchell & Company, from an auditing process. Their auditors would set up shop with our Internal Auditors in our Accounting Dept. reviewing all our Accounts Payable and Accounts Receivables. They were able to turn the completed audit over to the Controller within a two week time frame.

Hopefully, this will give you an idea of how long a 600 chain store Corporation, that sold for $311 million dollars at the time of its being bought out by Zale Corp. in June of 1989, took to conduct a Inventory / Certified Audit.

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