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.

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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 1 year ago

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