Project instructions:
The report is to be five pages, double-spaced, with APA format for citations and references. APA paper: double-spaced, 12-point Times New Roman font, with page header on the top left of the page as well as a page number on the top right of the page.
Project Detailed Instructions
1. Select a publicly traded organization and submit for my approval. (This task was completed the Week 1)
Previously submitted to Professor:
Greetings Professor:
I am seeking permission to study one of the world?s largest grocery retailers, The Kroger Company (Kroger; NYSE:KR).
Earlier this year, I believed it was a great idea for Kroger to merge with Harris Teeter; however, I have no factual reasons to stand by assumption. So now is a great time to examine Kroger (hold 25th position on the 2014 Fortune 500 List).
Here is a direct link to Kroger's 2014 SEC 10K:
https://www.sec.gov/Archives/edgar/data/56873/000110465914024819/a14-2996_110k.htm
Kindest,
Sam
2. After your company has been approved, visit the SEC's website (www.sec.gov) or your selected company's website to obtain a copy of a recent Form 10-K filing for the company your selected. Prepare a report and discuss the following topics:
I. Understanding the Company's business and industry
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?
II. Assess business (discuss the following topics)
a. Divisions and Product Lines may be discussed in the MD&A section. What audit and internal control issues may arise in these areas as you consider chapters 10 and 11?
b. Discuss the profitability and other comments in the MD&A section as they relate to chapters thus on audit strategy, risk, internal control, materiality and management.
c. 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.
d. What ethical and legal liability relating to accountants and auditors might relate to your SEC 10-K company?
e. Describe four or five key business risks related to the client's business and industry.
f. How does the company compare with others in the industry?
III. Prepare a variance analysis for your company:
a. Create a table and refer to percentages in terms of year to year change for dollar values and identify accounts with a variance of 15 percent or highest.
b. Review the notes in the Company?s financial statements ? which accounts are discussed in the Company?s financial statements notes
c. Discuss possible reason(s) for the variance
IV. Discuss the auditor’s name, city and state, and date of their letter. Read their opinion and comment on issues highlighted other than the standard clean opinion. What issues may have been included in a management letter to your SEC 10-K company based on issues you have identified this semester where audit issues and the management of risk may arise.
V. Conclusion