Assignment: Financial Statement Audit
Use the following guidelines:
1. Each student will pick two publicly traded companies for two fiscal years. Students will use sec gov website (Securities and Exchange Commission) website to obtain information regarding the annual reports and the related material.
2. These publicly traded companies should be in the same industry (Example - Manufacturing, Financial, Utilities etc.).
3. On the SEC website students will look for the following fillings:
Process: (sec website - filling type - 10-K - Document)
a. Annual Report (10-K Report)
b. Proxy Statements (DEF filings). These proxy statements are filed generally within 2 or 3 months after Annual Report.
4. From the Annual (10-K) report students will provide the following information:
a. Company profile and history.
b. Financial information - Net Income, Total Assets and other financial information for calculating various financial ratios. Students have a choice in selecting these ratios (use any 5 financial ratios). Students are required to use the same ratios for both the companies. (just provide the date, Charts in pictorial form are not required)
c. Students are required to report the current stock price for the companies.
d. Independent Auditor's Report. Students will determine the type of audit opinion presented in the Audit report (Unqualified, Qualified, Disclaimer or Adverse).
5. From the Proxy (DEF) filings students will provide the following information:
a. Students can find information related to Audit Fees and background information of the Key Officers of the company.
b. Students will report any changes in the Auditor from the prior year and report any reason given for such a change.
6. After providing the aforementioned information students will finally provide their analysis regarding the better company to invest.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.