ACCOUNTING 481Activity 3Audit Report Questions (Adapted from Fay, Stein, 20151. Find Coca-Cola Company’s 2014 10-K filing on the Securities and Exchange Commission (SEC) website (http://www.sec.gov). The financial statement date is December 31, 2014. You can search for specific company documents on the SEC website by clicking on Company Filings in the upper righthand corner of the website. For
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Activity 3
Audit Report Questions (Adapted from Fay, Stein, 2015
1. Find Coca-Cola Company’s 2014 10-K filing on the Securities and Exchange Commission (SEC)
website (http://www.sec.gov). The financial statement date is December 31, 2014. You can search for
specific company documents on the SEC website by clicking on Company Filings in the upper righthand corner of the website. For this question, you will want to search for “Coca Cola Co” to find the
correct entity. Once you see the list of the company’s filings, search for “10-K” in the Filing Type box to
narrow the search to only 10-K filings.
a. What type of audit opinion was issued on the financial statements – unqualified, qualified,
adverse, disclaimer? (An easy way to find the audit report is to search the document [Control +
F] for one of the required words in the title of the audit report.)
b. List the purpose of each of the first three paragraphs.
c. Why is the final paragraph included?
d. What date was the end of fieldwork?
e. What type of opinion was issued on the internal controls over financial reporting?
f. What criteria was used to evaluate internal controls?
g. What is the date of the auditor’s report on internal controls? What does this date match?
a. This audit report has an additional paragraph. What is the purpose of this paragraph?
b. Where is this paragraph located in the report?
c. What type of opinion was issued on the financial statements – unqualified, qualified, adverse,
disclaimer?
a. This audit report has an additional paragraph. What is the purpose of this paragraph?
b. Where is this paragraph located in the report?
c. What type of opinion was issued on the financial statements – unqualified, qualified, adverse,
disclaimer?
d. Read Note 2 in the footnotes to Border’s financial statements. Summarize the key points
disclosed by management about this issue.
a. What type of opinion was issued on the 2010 financial statements – unqualified, qualified,
adverse, disclaimer?
b. What was the reason for this type of opinion?
a. What is a 20-F filing?
b. Who is the auditor for Canon Inc. during this period?
c. The audit report includes an additional paragraph just prior to the opinion paragraph. What issue
does this additional paragraph identify?
d. What type of opinion was issued on the financial statements – unqualified, qualified, adverse,
disclaimer?
a. The first report relates to the financial statements, while the second report relates to internal
controls. What type of opinion was issued on the internal controls over financial reporting? If
the auditor identified any deficiencies, how were they classified?
b. What type of opinion was issued on the financial statements – unqualified, qualified, adverse,
disclaimer? Does this opinion differ from the opinion issued for internal controls? If so, discuss
why you think this difference could arise.
a. Find the audit report. List at least two differences in the audit report of a private company
relative to the audit reports of publicly traded companies that you previously reviewed.
b. What type of opinion was issued on the financial statements under U.S. GAAP – unqualified,
qualified, adverse, disclaimer?
c. What additional paragraph was added to explain this type of opinion?
d. How does the wording differ in the opinion paragraph on U.S. GAAP?
e. What is the “Statutory Basis of Accounting”? Read Note 1 in the footnotes to understand this
basis of accounting used for insurance companies. What type of opinion was issued on the
financial statements under the Statutory Basis of Accounting – unqualified, qualified, adverse,
disclaimer?
a. Under “Financial Information,” find the 2012 Archives and open the 2012 Consolidated
Financial Statements. The financial statement date is December 30, 2012. What type of opinion
was issued on the financial statements – unqualified, qualified, adverse, disclaimer? What is the
reason for this opinion?
b. Now open the 2013 Consolidated Financial Statements in the 2013 Archives. The financial
statement date is December 29, 2013. What additional information is included in the first
paragraph of the Auditor’s Responsibility section?
c. What type of opinion was issued on the financial statements for 2013 – unqualified, qualified,
adverse, disclaimer?
a. What standards did the auditor follow when performing this audit?
b. Does this audit report appear more like the audit report for public companies based on PCAOB
standards or the audit report for private companies based on the AICPA standards? Why?
c. What type of opinion was issued on the financial statements – unqualified, qualified, adverse,
disclaimer?
d. Who signed the audit report? How does this differ from auditing standards used in the U.S.?
a. Find the Independent Auditor’s Report towards the end of the document. Who signs the audit
report (name and title)?
b. What type of opinion was issued on the U.S. Government’s consolidated financial statements?
c. Were any problems identified with the U.S. Government’s internal controls? If so, list the issues
discussed in the report.
d. What is a major cause of the government’s long-term fiscal challenges (bottom of page 5 and top
of page 6 in the GAO’s letter)?
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