Coca-cola; Risk Analysis Project: Memo

Prepare a written memo and make,… describing the key audit risks posed by your selected company.

  1. Begin your report with a historical overview of the company and its industry.
  2. Discuss the potentially problematic non-financial items that you identified for the assigned company such as, a management compensation scheme tied to
    reported earnings, an upcoming merger, restrictive bond covenants, etc.
  3. Present the results of analytical procedures you applied to your company’s financial data. Compute common-sized financial statements and key ratios for a
    5-year period. Perform trend and comparative industry analysis.
  4. Complete your presentation with a summary recommendation regarding whether the given company appears to be an acceptable audit client or alternatively, whether the company would pose an unacceptably high level of audit risk and/or
    business risk for an audit firm.
    along with a PowerPoint presentation required addressing points 1-4 above.
    The format of the memo should be as outlined below;
    purpose; xxxx
    Background: Should contain responses to Item(s) #1, 3
    Issue(s): Should contain responses to Item #2
    Conclusion: Should contain responses to Item #4

Sample Solution