Everything is on the document word, there is not need for essays. You can respond number by number
If you have any question let me know.
1
Simulation 3: SEC Registrant – Part I
Purpose: The primary purpose of this case is to help you become familiar with the content of filings that public
companies (“Registrantsâ€Â) include in various filings that they make with the Securities and Exchange Commission.
As a public accountant you will 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.
Required: To successfully complete this case you will need to search for and analyze various reports and
information contained on the selected Company’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, 2019) and the Proxy Statement,
which for December 31, 2019 year-end companies was most likely filed in the March to May, 2020 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.
PICK YOUR OWN COMPANY – INDIVIDUAL PROJECT
1. Briefly describe (and cite source for each):
a. the company,
b. the location of its corporate headquarters,
c. its business,
d. its area of operations,
e. major products
f. operating segments,
g. major competitors,
2. Describe at least 5 risk factors and the possible impact on the Company if it does not successfully manage
these risks. ( cite source)
a. Why would auditors want to know about their clients’ business-related risks?
3. Describe The Company’s audit committee and its duties. (cite sources for each)
a. Who is the designated financial expert on the audit committee? ( cite source) Does the designation
as only one individual as a financial expert seem adequate for the complexity of The Company and
the requirements of the Sarbanes-Oxley Act?
b. Review the audit committee’s report and describe its primary contents.
c. Describe the Audit Committee Charter
4. Who is the auditor for The Company? ( cite sources for each)
a. What were the fees charged for audit services for each of the last two fiscal years?
b. What were the type and amounts of other fees for services for each of the last two fiscal years?
c. Describe and conclude on the process used by the Audit Committee to determine the independence
of the independent registered public accounting firm.
Formatting: Your response should not exceed 3 single spaced pages (note the increase in page limit). Please review
your syllabus for all other formatting and submission guidelines. The due date for this project is also indicated on
your syllabus.
2
Simulation 3: SEC Registrant – Part II
Purpose: The primary purpose of this case is to help you become familiar with the content of filings that public
companies (“Registrantsâ€Â) 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.
Required: To successfully complete this case you will need to search for and analyze various reports and
information contained on the selected Company’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, 2019) and the Proxy Statement,
which for December 31, 2019 year- end companies was most likely filed in the March to May, 2020 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.
USE THE SAME COMPANY THAT WAS ASSIGNED TO YOUR TEAM IN PART I
5. Name of Company and date of annual report examined.
6. The Sarbanes-Oxley Act of 2002, modified the requirements in the Exchange Act rules such that, effective
starting in 2002, principal executive officers of publicly traded companies must include certain certifications
in the annual report on Form 10K and also in the quarterly reports on Form 10-Q.
a. Name each certification report in the annual report on Form 10K and the section of the Sarbanes
Oxley act that requires it
b. Specify the name and title of the executive officer who signed each of the certification reports
included in the annual report on Form 10K. ( cite source for each)
c. Why do you think Congress felt that it was necessary to require executive officers to make
affirmative claims such as these reports and certifications?
7. What are related party transactions?
a. Why do related party transactions pose a risk to audit firms?
b. Read about the related parties at The Company. Are there any situations that cause you particular
concern?
8. Read management’s report on internal control ( cite source)
a. What did management conclude about the effectiveness of its internal controls?
b. What basis did management use to make that assessment?
c. Did the auditors agree with management’s assessment of the effectiveness of its internal controls?
d. Does the Company have any comments made by the staff of the SEC that were unresolved when its
latest Form 10K was filed?
9. 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.
a. Why is it important that the audit firm articulate these responsibilities in this way?
b. Name the independent registered public accounting firm
c. What type of opinion did the independent registered public accounting firm render on the latest
financial statements?
d. Were there any modifications to the report of the independent registered public accounting firm. If
so, describe the modification and the reason for it
3
10. 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.
Formatting: Your response should not exceed 3 single spaced pages (note the increase in page limit). Please review
your syllabus for all other formatting and submission guidelines. The due date for this project is also indicated on
your syllabus.
Purchase answer to see full
attachment
