As of last year, Nike’s sales revenue was approximately $10.697 billion. The mix of Nike’s prod

The main focus was on the customer's wants and needs their purchase of Nike's athletic shoes. Nike gives their customers the feeling of self-confidence and the advantage over their competition. One major area that brings unlimited opportunities to Nike is the international market. In the United Sates, there are 4 people for every pair of Nikes, France has 11, Japan has 50, and China has 11,821. These figures show that the greatest growth for Nike is overseas.

Nike’s domestic distribution centers for footwear are located in Wilsonville, Oregon; Memphis, Tennessee; and Greenland, New Hampshire. Apparel products are shipped from their Memphis distribution center. Overseas, Nike operates 24 distribution centers in Europe, Asia, Australia, Latin America, Africa, and Canada. In addition, Nike operates 175 retail outlets outside the United States, consisting of NIKETOWNs, factory stores, employee stores, and Cole Haan stores. Nike sells a line of dress and casual footwear, apparel and accessories for men and women under the brand names Cole Haan, and Bragano through their wholly owned subsidiary, Cole Haan Holdings, Inc. Nike also owns a subsidiary under the name of Bauer NIKE Hokey Inc., which manufactures and distributes ice skates, skate blades, in-line roller skates, protective gear, hockey sticks, and hockey jerseys. Another one of Nike’s wholly owned subsidiaries, Hurley International LLC, designs and distributes action sports apparel for surfing, skateboarding, and snowboarding as well as youth lifestyle apparel and footwear under the Hurley brand name.

Nike is the leader in its industry setting pretty much all the standards and retaining the most brand recognition. They’ve been expanding all of their lines to cover sports equipment for just about every sport imaginable and have a long list of celebrity endorsements and sponsorships. While their U.S. statistics remain above average in all categories, they have begun to focus their attention on their international affairs and are beginning to rely heavily upon these. They continue to become prominent in every market they enter into and basically have the attitude that the sky is the limit for their company.

Nike’s main competition is Reebok, Adidas, Sketchers, Fila, and any and all other footwear manufacturers. They remain at the top of their industry controlling over 20% of the U.S. athletic footwear market. They have also broken into the international market place and seen a 33% growth in that sector in the past 3 years. Their international sector also accounts for almost half their revenues. Nike is and will remain to be the most widely known and worn athletic apparel and footwear company in the world.

For an auditor to reduce assessment control risk the auditor must believe that the actual control risk is lower than the initial assessment. Since the initial assessment does not have to be formal and an auditor must always exercise professional skepticism, the initial assessment in normally very high even set at maximum. But and auditor will lower this assessment control risk if the client shows a diligent effort to not only have in place internal controls but actually test to see if they are working and if they are not implementing new controls. A major catalyst in a company’s internal controls is the company’s board of directors. Nike also feels this statement is true also. They have four -page section dedicated to their Corporate Governance Guidelines which illustrate the board’s purpose, their roles, the manner in which management is to be reviewed and the policies and guidelines. By providing this information Nike has exuded a positive attitude towards implementing internal controls. These actions can lead the auditor to reduce assessment control risk.

When auditing Nike one of the areas that would be less than likely to have material misstatements would be cash unless the cause for the misstatement was error instead of frau

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