The first step in this process is to go to the website of a publicly-traded US company and select the most recent 10-K Form (legally-required document publicly-traded companies must submit to the Securities and Exchange Commission – SEC – on an annual basis. Among other things, this document contains the opinion of the CPA firm regarding the company’s financial statements and adherence to Generally Accepted Accounting Principles – GAAP). The contents of this form will be the basis of the team assignments
The company is Facebook.
Section 4, Audit Tests
The reading in Chapter 13 (p. 402-407) describes five types of audit tests of financial statements:
(1) Risk Assessment Procedures
(2) Test of Controls
(3) Substantive Tests of Transactions
(4) Analytical Procedures
(5) Tests of Details of Balances.
In 350- to 700-words:
Identify which tests are best suited for the company you selected and why.
Explain why some tests are not suitable.Get Business and finance homework help today
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