Assignment
In doing this assignment please use the bullet points as a guideline for the solution.
On a beautiful early-September morning you are called into the senior partner's office and told you and your team have been selected to lead the first-ever effort to audit a publically-traded company for Fine. You are honored, but also know auditing a public company is a bit more tricky and complicated than auditing private and not-for-profit organizations. Fortunately, the senior partner had considerable experience early in his career with another firm in auditing public companies and told you he would be with you all the way. Relieved, you asked him what he wanted you to do. He tossed you the most recent Form 10-K of the company you selected and gave you the following assignments
Review and discuss the Form 10-K for the company you have selected.
The link below is the company that is being audited.
Section 1, Initial Risk Assessment.
Hint: The business and risk information is usually found in the first part of the Form 10-K. However, for the risks, do not simply restate what is in the Form 10-K. Think like a senior manager at a CPA firm - what accounts (Cash, A/R, Revenue, Inventory, etc.) might be the most potentially risky and why
Describe the business briefly.
Assess any risks you may encounter in auditing this company
General Audit Concerns
• The requisite background you and your team will need to adequately audit this company.
• Time it will take to adequately audit this client.
General Business Concerns
• Has the company you're auditing recently increased or decreased their operations due to mergers or sales of parts of the business?
• Are they a conglomerate with lots of disparate kinds of goods and services, or are they a simple straight-forward type of business operating in a relatively small location?
• Are operating supplies (such as jet fuel or specialty plastics) in short supply or subject to wild pricing swings on the open market?
• What about overseas operations - are they operating in dangerous parts of the world?
• How robust or intense is the competition in this particular industry?
• Has their top management recently been replaced and if so, why?
• Is seasonality a factor for this company? How does that affect revenue and other operations?
Attachment:- Report Link.rar