Forecasting and Financial Statement Adjustment; The Case of Retail Stores in Kwazulu-Natal, South Africa 

The research paper examines the effects of forecasting on the financial statement adjustment for retail stores in KwaZulu-Natal, South Africa. The study used quantitative design method. A questionnaire was designed for this study and 200 copies were issued to five respondents per retail store in each of the two different branches of the 20 stores in KwaZulu-Natal listed on the Johannesburg Stock Exchange. The Exploratory Factor Analysis was employed in this study. Furthermore, a regression test was prepared to estimate the effect of the independent variable on the dependent variable. The findings showed that pricing and inventory forecasting cause financial statements adjustment in retail stores. Thus, it was concluded that retail store forecasts will influence the business flow cycle if mismanaged. To have more reliable financial statements, adjustments have to be made accordingly. Smooth operations in retail is highly dependent on future predictions.