Horizontal and Vertical Analyses – Ryu Apparel Inc. Financial Statement Analysis

Table of Contents

Part 1: Internal control – Air Canada-Air Canada suffers major app data breach of 20,000 customers- Digital Journal By Tim Sandle  Aug 30, 2018        3

Part 2: Accounting scandals and qualitative characteristics of financial information – Lehman Brothers        6

Part 3: Horizontal and Vertical Analyses – RYU Apparel Inc. Financial Statement Analysis        8

Part 4: Ratios – RYU Apparel Inc. Financial Statement Analysis        9

References        13

Appendices        14

Part 1: Internal control – Air Canada-Air Canada suffers major app data breach of 20,000 customers- Digital Journal By Tim Sandle  Aug 30, 2018

As the average Canadian's mobile application (apps) usage goes up, we’re seeing an increase in cyber attacks on the information required to use these services.  Most mobile apps are simple to use; they simply require you to enter your personal information, but because of this, more and more companies are being hacked for the personal data of their clients for nefarious reasons. On August 29, 2018, Air Canada, Canada’s largest airline, announced that they had been victims of a cyber hack of their Mobile division on August 22-24, 2018. The article in the Digital Journal details the events that Air Canada has released thus far and gives an insight on Mobile apps may be lacking in their security("Air Canada suffers major app data breach of 20,000 customers," 2018).

      There are approximately 1.7 million users to Air Canada’s mobile app, each client creates a profile by entering personal data such as names, email addresses, Aeroplan numbers, passport numbers, NEXUS numbers, Known Traveler numbers, genders, dates of birth, nationalities, passport expiration dates, passport countries of issuance and countries of residence ("Air Canada suffers major app data breach of 20,000 customers," 2018). As the Client creates a profile they also create a password that helps protect the information entered. Air Canada on August 22 through to August 24, and on Aug 29, 2018, releases " they recently detected unusual login behavior with Air Canada's mobile App” ("Air Canada suffers major app data breach of 20,000 customers," 2018). ✔Air Canada estimates around 20,000 or 1% of their clients' personal information was compromised and ensures the public trust that the credit card information was safely encrypted and all 1.7 million accounts are locked until password updates are complete. ✔Tim Sandle points out that Air Canada was allowing some information to be easily obtained through weak passwords and while other information was encrypted. The Digital Journal highlights the BBC interview of Amit Sethi, a security consultant at Synopsys, regarding the data breach. He noted that Air Canada password only accepted letters and numbers, and required 6 to 10 characters and no other symbols, leaving personal information open to being hacked("Air Canada breach involves passport data", 2018). ✔While an average password can be hacked with 5-10 minutes, a more complex password can take years to break. Still, it does not replace proper and adequate security programming ("Password strength”, wiki, 2018). While the Air Canada password fix may be a quick and easy method,  the use of encryption on personal information would reduce the risk of their clients’ identities being stolen. ✔