Description

Research Paper - Part 1

“Understanding ___________”

In planning for an audit of a client, you generally need to obtain some background information

on the client. For this paper, select a company that you work for or one that is a public

company. (You must be able to obtain financial statements for this company.) For this

company, write a 2 to 3-page paper (typed, double-spaced) along with a separate reference

page (annual reports, websites, and meetings with company personnel are also acceptable

references) explaining your understanding of the company.

Please review the most recent annual report and do additional research on the company’s

recent developments and press releases. The information in this section of the paper should

include information about the company such as: name, brief history, major products, major

business units, customers, location(s) (of headquarters and other major operations), public vs.

private, number of employees, etc.

Research Paper - Part 2

“Understanding ___________ ‘s Industry and Risks”

In planning for an audit of a client, you generally need to obtain some background information on the client.

For this paper, use the same company you used for the first part of the paper and write a 2 to 3 page paper

(typed, double-spaced) along with a separate reference page (annual reports, websites, and meetings with

company personnel are also acceptable references) explaining your understanding of the company’s industry

and risks. Please review the most recent annual report and do additional research on the company’s recent

developments and press releases.  Your paper should include the following sections:

1. Understanding the Company’s Industry: The information in this section of the paper should include

information about the client's industry such as: type, brief history of the industry, largest companies in

the industry, your company's biggest competitors, how your company compares to its competitors,

recent industry developments/changes, etc.

2. Understanding of the Company’s Risks: For this section of the paper, most of this information can be

found in the notes to the financial statements (or other info in the annual report) as well as by doing

an analytical review and/or ratio analysis of the client. The information in this section of the paper

should include information about the client's risks such as:

o Any significant and/or unusual changes in the client's balance sheet or income statement

accounts (based on the results of an analytical review of the company's most recent 2 years'

financial statements) and the reasons or possible reasons for those changes

o The risks associated with the company's business or products

o The risks associated with the company's significant financial statement accounts (i.e.,

collectability of accounts receivable)