Question
In: Accounting
What type of audit opinion was given for the financial statements and the internal financial controls...
What type of audit opinion was given for the financial statements and the internal financial controls for Nike on their 10k report? Explain the key items discussed in the audit report.
Solutions
Expert Solution
A Form 10-K is an annual report required by the U.S. Securities and Exchange Commission (SEC), that gives a comprehensive summary of a company's financial performance. Although similarly named, the annual report on Form 10-K is distinct from the often glossy "annual report to shareholders," which a company must send to its shareholders when it holds an annual meeting to elect directors (though some companies combine the annual report and the 10-K into one document). The 10-K includes information such as company history, organizational structure, executive compensation, equity, subsidiaries, and audited financial statements, among other information.
The government requires companies to furnish 10-K forms so that investors have fundamental information about companies so that they can make an informed investment decision.
The 10-K includes five distinct sections:
- Business provides an overview of the company’s main operations, including its products and services, i.e., how it makes money.
- Risk Factors outlines any and all risks that the company faces or could face in the future, typically listed in order of importance.
- Selected Financial Data details specific financial information about the company over the last five years. The idea behind this section is present more of a near-term view of the company’s recent performance
- Management’s Discussion and Analysis of Financial Condition and Results of Operations, known as MD&A, gives the company an opportunity to explain its business results from the previous fiscal year. This section is where the company can tell its story in its own words.
- Financial Statements and Supplementary Data includes the company’s audited financial statements, including the income statement, balance sheets and statement of cash flows. Also included is a letter from the company’s independent auditor certifying the scope of their review.
Here are the four types of audit reports that are given by external auditors:
- Unqualified Opinion. An unqualified opinion indicates that the information presented in a company's financial report is clean. ...
- Qualified Opinion. ...
- Disclaimer Opinion. ...
- Adverse Opinion.
ekkarill92 answered 2 years agoRelated Solutions
What are the goals of conducting an audit of financial statements and internal controls? Who typically...
What are the goals of conducting an audit of financial
statements and internal controls? Who typically conducts such
audits, how often, and for whom?
What type of audit report (opinion) would result if financial statements are presented failry in all...
What type of audit report (opinion) would result if financial
statements are presented failry in all mayeril aspects of
GAAP?
describe what is the difference between the audit of financial statements and the audit of internal...
describe what is the difference between the audit of financial
statements and the audit of internal controls for U.S public
companies. write 10-12 sentences.
Audit of Internal Control Over Financial Reporting that is Integrated with an Audit of Financial Statements,"...
Audit of Internal Control Over Financial Reporting that is
Integrated with an Audit of Financial Statements," provides a guide
for auditors when performing integrated audits. by visiting PCAOB
website
How should the auditor determine which controls to test?
How might the auditor use evidence obtained in the audit of the
financial statements when concluding on the effectiveness of
internal control over financial reporting?
The auditor is required to express an opinion on a set of financial statements. Audit risk is the probability that the auditor will express an incorrect opinion resulting in financial loss to persons acting upon the audit opinion given.
The auditor is required to express an opinion on a set of
financial statements. Audit risk is the probability that the
auditor will express an incorrect opinion resulting in financial
loss to persons acting upon the audit opinion given. There are laws
and regulations in place which provide protection for stakeholders
who suffer losses from reliance on the auditor’s report which may
be found “lacking”.In reference to the legal and regulatory framework of the
auditing profession, what are the circumstances...
Question: The auditor is required to express an opinion on a set of financial statements. Audit...
Question:
The auditor is required to express an opinion on a set of
financial statements. Audit risk is the probability that the
auditor will express an incorrect opinion resulting in financial
loss to persons acting upon the audit opinion given. There are laws
and regulations in place which provide protection for stakeholders
who suffer losses from reliance on the auditor’s report which may
be found “lacking”.
In reference to the legal and regulatory framework of the
auditing profession, what are...
Question: The auditor is required to express an opinion on a set of financial statements. Audit...
Question:
The auditor is required to express an opinion on a set of
financial statements. Audit risk is the probability that the
auditor will express an incorrect opinion resulting in financial
loss to persons acting upon the audit opinion given. There are laws
and regulations in place which provide protection for stakeholders
who suffer losses from reliance on the auditor’s report which may
be found “lacking”.
In reference to the legal and regulatory framework of the
auditing profession, what are...
Auditors must obtain sufficient appropriate audit evidence to issue an audit opinion on the financial statements....
Auditors must obtain sufficient appropriate audit evidence to
issue an audit opinion on the financial statements. In order to
gain that evidence, auditors may use a combination of tests of
controls and substantive procedures.
Required:
. Discuss a test of control and a substantive procedure. Give at
least one example of each that may be used when auditing the
completeness of corporate payroll system.
1. Explain what “internal controls” are and how they relate to the audit. What effect do...
1. Explain what “internal controls” are and how they relate to
the audit. What effect do internal controls have on the job of the
independentauditor?Your answer should discuss
the relationship between internal controls and the financial
statements. In answering your questions, consider whether good
internal controls contribute to the accuracy of financial
statements. On the other hand, explore the possibility that
financial statements can be accurate even if internal controls are
poor. You may give an example of an internal...
The auditor is required to render an opinion on the system of internal controls (for public...
The auditor is required to render an opinion on the system of
internal controls (for public companies). Which of the following
would result in an adverse opinion being issued by an auditor
related to internal controls?
The control risk is assessed at a low level.
The tests of controls support the documented understanding of
controls.
There is a material weakness in the design or operation of
controls.
A confirmation request is not returned to the auditor in a
prompt manner.
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