Assignment
Purpose
The primary purpose of this case is to help you become familiar with the content of filings that public companies ("Registrants") include in various filings that they make with the Securities and Exchange Commission. As a public accountant you'll need to be very well versed in all accounting and auditing matters since in the eyes of the SEC, the independent registered public accounting firm is considered "Expert" in accounting and auditing.
Task
To successfully complete this case you will need to search for and analyze various reports and information contained on the Aflac Incorporated's web site and/or on the SEC web site and perhaps, other sites as well. The financial and proxy information should be from the most recently filed Annual Report on Form 10 K (which for many companies on the list could be the year ended December 31, 2020) and the Proxy Statement, which for December 31, 2020 year- end companies was most likely filed in the March to May, 2021 timeframe. In preparing your report, where noted in each question, please set forth the exact source of the information you cite for each question. (For example - Form 10 K, Item 1, Business). For some questions, you may wish to include a copy of certain documents as an attachment to your case.
The company is Aflac Incorporated
Answer the following questions. For information found in 10k report or Proxy statement, it can be copied and pasted. All responses must be cited. Your response should not exceed 3 single spaced pages
• Why would auditors want to know about their clients' business-related risks?( cite source)
• What are related party transactions?( cite source)
o Why do related party transactions pose a risk to audit firms?
o Read about the related parties at The Company. Are there any situations that cause you particular concern?
• Read management's report on internal control ( cite source)
o What did management conclude about the effectiveness of its internal controls?
o What basis did management use to make that assessment?
o Did the auditors agree with management's assessment of the effectiveness of its internal controls?
o Does the Company have any comments made by the staff of the SEC that were unresolved when its latest Form 10K was filed?
• Read the report of the independent registered public accounting firm for The Company. Notice that the report clearly articulates differential responsibilities on the part of management versus the audit firm. ( cite source)
o Why is it important that the audit firm articulate these responsibilities in this way?
o Name the independent registered public accounting firm
o What type of opinion did the independent registered public accounting firm render on the latest financial statements?
o Were there any modifications to the report of the independent registered public accounting firm. If so, describe the modification and the reason for it
• Based on your research and readings about the Company state and explain your conclusion about whether the independent registered public accounting firm should continue to serve as the auditor for the Company.( cite source)
Format your assignment according to the give formatting requirements:
• The answer must be using Times New Roman font (size 12), double spaced, typed, with one-inch margins on all sides.
• The response also includes a cover page containing the student's name, the title of the assignment, the course title, and the date. The cover page is not included in the required page length.
• Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.