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Introduction: An internal
The Sarbanes-Oxley Act of 2002, Section 404, mandates that the annual report include an internal control report in which management must:
- Declare its responsibility for establishing and maintaining an acceptable financial reporting internal control structure and processes.
- Examine the efficacy of its financial reporting internal control structure and procedures.
To state:The main components of IBM’s internal control structure.
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Introduction: The process of auditing a company's financial statements and underlying data in order to provide an opinion on whether they are honestly presented is known as auditing.
To state:The IBM external auditor, along with what else does this firm examines in addition to IBM’s financial statements. Also state the body’s standards that the firm follow in conducting the audit.
3
Introduction: The audit committee is a subsection of the board of directors that keeps stockholders and the independent accounting firm in direct communication.
To state:The roles and the composition of IBM’s Audit Committee.
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Check out a sample textbook solutionChapter 6 Solutions
Financial Accounting: The Impact on Decision Makers
- The following are selected portions of the report ofmanagement from a published annual report.REPORT OF MANAGEMENTManagement’s Report on Internal Control over Financial ReportingThe Company’s management is responsible for establishing and maintaining adequateinternal control over financial reporting. The Company’s internal control over financialreporting is a process designed under the supervision of its President and ChiefExecutive Officer and Chief Financial Officer to provide reasonable assurance regardingthe reliability of financial reporting and the preparation of the Company’s financialstatements for external reporting in accordance with accounting principles generallyaccepted in the United States of America. Management evaluates the effectiveness ofthe Company’s internal control over financial reporting using the criteria set forth bythe Committee of Sponsoring Organizations of the Treadway Commission (COSO)in Internal Control–Integrated Framework. Management, under the…arrow_forwardThe annual report to the shareholders and the 10-K to the SEC should provide an accurate reflection of an entity’s operations and performance. How does the management team adequately and ethically balance presenting the financial information in a way that is accurate but also reflects favorably on company performance?arrow_forwardhttps://www.republictt.com/pdfs/annual-reports/RFHL-Annual-Report-2022.pdf Use the link above to c) Critically analyze any significant accounting policies and estimates disclosed in the notes to the financial statements. In your answer, indicate whether the company complied with the accounting standards and conventions.arrow_forward
- Financial Reporting Analysis: a) Evaluate Massy’s latest annual financial statements (balance sheet, income statement, and cash flow statement) and comment on the company's financial performance and position. In your response, use the requirements of IAS 1 as a guide. b) Identify and discuss key accounting principles and standards applied in the Massy’s financial reporting process indicating their reasons for choosing these and how they were applied. Comment briefly on the appropriateness of the choices made given the company’s industry, location and type (e.g. MNC, regional conglomerate, etc.) c) Critically analyze any significant accounting policies and estimates disclosed in the notes to the financial statements. In your answer, indicate whether the company complied with the accounting standards and conventions. Financial reports: https://massygroup.com/wp-content/uploads/2022/11/MASSY-DIGITAL-ANNUAL- REPORT-2022-updated.pdfarrow_forwardIn 1984 the FASB released Statement of Financial Accounting concepts No. 5 "Recognition and Measurement in Financial Statements of Business Enterprises." Required: Summarize the major provisions of this pronouncementarrow_forwardBased on Pak Elektron Ltd.'s (PEL) annual report of 2017 explain in your own words the following questions:a) What are the roles of the Audit and HRM Committees ?b) Read through PEL'S Corporate Strategy, Business ethics and Practicesc) Management objectivesd) Stakeholders’ Engagemente) Code of Corporate Governancearrow_forward
- Please analyze, assess, and synthesize the Annual Report or Form 10-K or Form 20 - F (whatever they call it in that jurisdiction) of the company you choose. You can usually find it on the Company's website in Investor R. Introduction 2. Industry situation and company plans A. Management Letter B. B. Review Company's Products and Services 3. Financial Statements A. Income Statement B. Cash Flow Statement C. Balance Sheet D. Accounting Policies 4. Financial Analysis & Ratio A. Financial Analysis B. Ratio C. Market Indicator Financial Ratios 5. References 6. Complete Calcuation of Part 4 in excelLimiarrow_forwardIf you are the Management Accountant of a company, you would be primarily concerned with: a. Reporting of past data b. Providing useful information to external users c. Helping the management in preparing plans and forecasts for future activities of business d. The annual reporting of company’s financial performancearrow_forwardIdentify the following as True or False: Managerial accounting reports must comply with the rules set in place by the FASB. Financial accounting reports are typically general-purpose reports. Financial accounting reports pertain to the entity as a whole, whereas managerial accounting focuses more on subunits of the organization. The main users of the financial accounting information are the internal users. Managerial reports are prepared on an as-needed basis. Financial accounting reports often must be audited at least annually by an independent auditor.arrow_forward
- Indicate whether each statement describes financial accounting or managerial accounting. The information is directed at external users who are making decisions pertaining to investing, extending credit, and other decisions. The principal users are the organizations managers. The key focus is on the entity as a whole. The rules and principles are very flexible. The information gathered is usually available after an independent audit has been completed.arrow_forwardThe standards, procedures, and principles companies must follow when preparing their financial statements are known as which of the following? A. Financial Accounting Standards Board (FASB) B. generally accepted accounting principles (GAAP) C. Securities and Exchange Commission (SEC) D. conceptual frameworkarrow_forwardA conceptual framework for financial reporting is a statement of generally accepted theoretical principles, which provide the basis for __________________. i)Development of new accounting standards ii)Development of accounting staff through training programs iii)Evaluation of accounting standards which already in existence. iv)Developing quality control methods to enhance the quality of products and services. a. i) & iii) b. ii) & iv) c. iii) & iv) d. i) & ii)arrow_forward
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