ACC XXXXXXXXXXPlease follow the instruction in order to do this assignemnt in powerpoint.OverviewYou have learned the importance of properly planning an audit engagement throughout the course. In this...

Linking Outsider CEO Strategies to Capital Allocation Theory
Audit Planning for Garmin Ltd.
Presenter: Student Name
Date:
Welcome to this presentation on the audit planning process for Garmin Ltd. As independent auditors, our role is crucial in ensuring the integrity of Garmin's financial reporting. This presentation will cover key aspects of our audit planning, including a company overview, risk assessment, and the audit procedures we'll employ. Our goal is to design an effective and efficient audit that addresses the unique challenges and opportunities presented by Garmin's business model and industry position.
1
Company Overview
Founded in 1989
Headquartered in Olathe, Kansas
Specializes in GPS technology
Five business segments: automotive, aviation, marine, outdoor, and fitness (Garmin Ltd., 2023)
Garmin Ltd., founded in 1989, has established itself as a leader in GPS technology and wearable devices. Headquartered in Olathe, Kansas, the company has grown from its roots in aviation and marine navigation to become a diversified technology company. Its five business segments - automotive, aviation, marine, outdoor, and fitness - reflect its strategy to leverage core GPS technology across multiple markets. This diversification provides both opportunities and challenges from an auditing perspective, as each segment may have unique revenue streams, inventory considerations, and regulatory requirements.
2
Operating Structure
Vertically integrated business model
Global presence with offices in over 30 countries
Manufacturing facilities in Taiwan and China
Direct-to-consumer and third-party distribution channels (Garmin Ltd., 2023)
Garmin's vertically integrated business model is a key aspect of its operations that we need to consider in our audit planning. By controlling everything from product design to distribution, Garmin can maintain high quality standards and quickly adapt to market changes. However, this also means they carry more operational risk. Their global presence, with offices in over 30 countries, adds complexity to our audit, particularly in areas like revenue recognition, transfer pricing, and compliance with various international regulations. The manufacturing facilities in Taiwan and China introduce additional considerations, such as supply chain risks and potential geopolitical impacts. We'll need to carefully assess the internal controls and processes that span this global network.
3
Our Firm's Services
Independent financial statement audit
Compliance with PCAOB standards
Adherence to AICPA Code of Professional Conduct
As Garmin's independent auditor, our primary responsibility is to express an opinion on whether their financial statements are free from material misstatement, whether due to fraud or error. This requires us to plan and perform the audit in accordance with PCAOB standards, which set high benchmarks for audit quality and professional skepticism. Our adherence to the AICPA Code of Professional Conduct is paramount, ensuring we maintain independence, objectivity, and professional competence throughout the engagement. This includes identifying and assessing risks of material misstatement, obtaining sufficient appropriate audit evidence, and evaluating the overall presentation of the financial statements. Additionally, as Garmin is a public company, we'll need to assess the effectiveness of their internal control over financial reporting as required by the Sarbanes-Oxley Act.
4
Risk Assessment - Overview
Inherent risks in technology...