Famous for continuously setting a new standard in board sports through youthful lifestyle brands and experiences.

Written By:

Shyam Harji

Kamaljeet Kaur

Ngor Deng

Amar Bikram

Billabong

International

Limited

Contents

3Billabong Company Analysis �

3Overview and Corporate Structure �

3Financial Analysis �

4Billabong Today �

5Risk Factors at Billabong �

5Inherent Risks �

5Fluctuations in Currency Values �

6Account Affected �

6Management Assertion �

6Inventory Risk �

6Account Affected �

7Management Assertion �

7Internal Controls �

7Internal Control for Currency Fluctuations �

8Internal control for Inventory �

9Substantive Procedure �

10Summary �

11References �

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Billabong Company Analysis

Overview and Corporate Structure

Billabong International Limited is an Australian based clothing company that is in the business of marketing, distribution, wholesaling and retailing of apparel, eyewear, accessories, wetsuits and hard goods in the board sports, Von Zipper, Palmers Surf, Xcel, Nixon and RVCA brands. The company has its operations across major countries in the world including Australasia, America, Europe and rest of the world.

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Billabong has made various acquisitions over the years including the acquisition of RVCA, a progressive art and design driven brand on July 12, 2010 and Surjection in September 2011 (Billabong International Limited, 2012). As far as the structure of Billabong International Limited is concerned, the Board of Directors is mainly responsible to the shareholders of the company. In order to perform the organisational functions effectively, the board is structured into six non executive directors along with the chairman and there are two executive directors (Billabong, 2012). In 1980's Billabong established its business in Australia and after that spread internationally through its franchise (www.billabongbiz.com). Billabong International is a multinational corporation that generates the majority of its revenue from operations in Australia, North America, Europe, Japan, New Zealand, South Africa and Brazil. The major...