Analysis and Audit Plan for a Public Company For this assignment, you may select any public company that issues stock and is traded on the stock exchange.(visit Sec.gov or Pcaob .gov for 10ks ) The...

1 answer below »

Analysis and Audit Plan for a Public Company
For this assignment, you may select any public company that issues stock and is traded on the stock exchange.(visit Sec.gov or Pcaob .gov for 10ks )
The objectives of this project are as follows:
1. To acquaint students with the annual report and Form 10-K of a publicly held company audited by a CPA firm.
2.To provide data for the practical application of certain steps in the financialstatement analysis and audit process
Detailed Instructions:
Thisprojectshould not be viewed as a management or marketing project. Very little time should be allocated to management and marketing.
Obtain a copy of a recent annual report of a publicly held company with stock actively traded on the New York, NASDAQ or other over-the-counter exchanges. Answer the following questions (
in paragraph form
,
using APA writing guidelines
):
a. What is the company's industry?
b. What are its primary products?
c. What raw materials does the company use?
d. How large is the company:



  • sales



  • assets



  • employees


e. Where is the company located?
f. What other people/companies are closely associated with this company?
g. Look at the annual report (It is different from the 10K and if you cannot find the actual company annual report, you may review another company's annual report for the general format for comparison with the 10K).



  • What image does it intend to convey?



  • What are the segments and functional contents of the report?


3. Obtain a copy of the Company's 10-K report for the same date as the annual report. Answer the following question:
a. How does the 10-K differ from the annual report?
4. Obtain outside information about the company and its industry(Some of this information may be available in the Annual Report or the 10K). Answer the following questions:
a. What are the key economic factors about the industry?
b. Where is the company in its life cycle?
c. What are the five or six most important factors for success in this business?
d. How does this company stand with respect to these factors?
e.
Describe four or five key business risks related to the client’s business and industry.
f.
What notable accounting considerations are there for companies in this industry?
g. What legal or regulatory matters are of concern?
h. What social matters are of concern?
5. Analyze the company's financial strength (using various financial ratios discussedin the chapters):
a. Assess the financial strength of the company for a three year period? Period must be consistent (example 2017, 2018, 2019).
b. How is the financial strength likely to change in the next year or so?
c. What are its sources of capital and what is the value of the company's capital?
d. How have capital markets responded to the company in the last year (stocks, bonds and loan increases over the previousyear?
e. How does the company compare with others in the industry?

What am I looking for?

You should provide your answers in paragraphs except for # 5 a which requires you to conduct an analysis. This response needs claculations.



Answered 166 days AfterJul 25, 2021

Answer To: Analysis and Audit Plan for a Public Company For this assignment, you may select any public company...

Akshay Kumar answered on Jan 08 2022
123 Votes
The Company which I have picked is PepsiCo. Following are the answers:
1. Answer:
a. PepsiCo’s Industry is Beverages and Food Processing.
b. PepsiCo’s Primary Products are Pepsi, Lay’s Potato Chips, Diet Pepsi, Mountain Drew, Quaker Foods and snacks etc.
c. Raw Materials used by company is Potato, Corn, Flour, oats, apple juice, sugar, wheat, oils etc.
d. Company has followings as of 2020:
a. Sales - $70.37 Billion
b. Assets - $78.55 Billion
c. Employee – 267,000
e. Headquarter of the PepsiCo is Harriston, New York.
f. PepsiCo has diversified its operations worldwide, with its products being distributed in more than 200 countries.
2. Answer:
· Annual Report – Annual report presents the information about the company to it readers. The Annual reports have information such as Performance of the company, goals for future years, financial information, message from Top management etc.
· Following are the contents of the Annual report:
· General Information
· Financial Review
· Corporate Governance Report
· Director’s Report
· Auditor’s Report
· Financial Statements
· Notes to the Financial statements
3. Answer:
The 10-K report is usually have more than the Company’s Annual report however is doesn’t include the photos, charts and other graphics presentation. The annual report is in a more user-friendly form whereas the 10-K report is prepared for the investors and market analysts. The 10-K Report is available on the govt port SEC website whereas the annual report is generally available on the website of the company.
4. Answer:
a. Economic Factors of Beverages and Food Processing Industry:
i. Beverages and Food Processing Industry is a consumer demand industry
ii. Pricing Pressure is high in Beverages and Food Processing
iii. Purchasing Power is available with large retail organizations
b. PepsiCo is in Maturity phase of its Life cycle.
c. Important factors for success in Beverages and Food Processing Industry:
i. Company should have good Market Position
ii. The Products of the company should be diversified
iii. Company should have good Marketing and Distribution.
iv. Company should have healthy Financial Policy
v. Company should have efficient Sales and Operating Planning
vi. Company should have great leadership
d. PepsiCo is performing excellent among these factors as PepsiCo hold good position in the Beverages and Food Processing Industry. It has diversified range of the Products which good Operating and Marketing Strategy. The Financial Policy of the Company is healthy and it has great leadership
e. Business risks related to the Beverages and Food Processing Industry:
i. Frequent changes in the Consumer Tastes
ii. Expansion in new Business
iii. Product Quality Issues
iv. Heavy Compliance challenges
v. Presence of E-commerce
f. Accounting Considerations for companies in Beverages and Food Processing Industry related to following:
i. Revenue Recognition;
ii. Goodwill and intangible assets;
iii. Income Tax expense
iv. Pension and Medical plans.
g. Legal or regulatory matters of concern in Beverages and Food Processing Industry:
i. Laws and regulations related to the use or disposal of plastics or other packaging
ii. Limitations on the marketing or sale of the products
iii. Comply with personal data protection and privacy laws
iv. Increases in income tax rates, changes in income tax laws or disagreements with tax authorities
h. There are no specific...
SOLUTION.PDF
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here
Have files?