Problem
Part I
Read the Notes to the Financial Statements (FS) for your SEC 10-K company. These "notes" are displayed after the financial statements.
i. Inventory comments: comment on inventory issues using the concepts of materiality and geographic location.
ii. Inventory and Sales: comment on issues related to diversity in customer base and issues of internal control.
iii. Accounts Receivable and Sales: comment on issues related to the selling and distribution system of your SEC 10-K company and issues of fraud as well as internal control.
iv. Challenges and opportunities you see as you relate our auditing topics to your company. Details are high level in the SEC 10-K but organizations rely on Auditing concepts, as they prepare for the audits and as part of their internal control process.
Part II
The financial statements for your company are usually posted in Item 8 of the SEC 10-K document. The management discussion and analysis section is earlier in the report.
i. The management of risk and uncertainty is often included in the MD&A section comments. What do you learn of interest here?
ii. 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.
iii. 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.
The response must include a reference list. Using Times New Roman 12 pnt font, double-space, one-inch margins, and APA style of writing and citations.