https://www.sec.gov/Archives/edgar/data/37996/000003799615000013/f1231201410-k.htm
2015
A
Respond to each question below:
- What ethical and legal liability relating to accountants and auditors might relate to your SEC 10-K company?
- What trends in sales, cost of goods sold, and gross profit do you see? Create a small table for your records and refer to percentages in terms of year to year change for dollar values and the gross profit percentage.
- Review net income and post comments using the techniques you used for gross profit.
- International Issues: comment on foreign currency issues and the global picture for your SEC 10-K company.
B
Read the Notes to the Financial Statements (FS) for your SEC 10-K company. These notes are displayed after the financial statements.
- Inventory comments: comment on inventory issues using the concepts of materiality and geographic location.
- Inventory and Sales: comment on issues related to diversity in customer base and issues of internal control.
- Accounts Receivable and Sales: comment on issues related to the selling and distribution system of your SEC 10-K company and issues of fraud as well as internal control.
- Challenges and opportunities you see as you relate our current textbook topics to your company. Details are high level in the SEC 10-K but organizations rely on Auditing concepts, as they prepare for the audits and as part of their internal control process.
C
The financial statements for your company are usually posted in Item 8 of the SEC 10-K document. The management discussion and analysis section is earlier in the report.
- The management of risk and uncertainty is often included in the MD&A section comments. What do you learn of interest here?
- Divisions and Product Lines may be discussed in the MD&A section. What audit and internal control issues may arise?
- Management often explains higher or lower than expected in their comments. Discuss the profitability and other comments in the MD&A section as they relate to our chapters thus on audit strategy, risk, internal control, materiality, and management.
