This is a project with other people in the group. The project is this:
GROUP FINANCIAL STATEMENT ANALYSIS PROJECT
The objective is to prepare a report comparing two firms that are competitorsin the same industry (WE CHOSE HOME DEPOT VS LOWE’S) to determine which company appears to be a better investment from the viewpoint of a potential shareholder. The two companies should have same fiscal year end, preferably December 31. Report your findings in a powerpoint format. The length of these options is up to you, but there must be sufficient materials presented to provide a critical analysis of the project.
My job is to:
· According to the management report (also called “Responsibility for Financial Reporting”), who bears responsibility for the integrity and objectivity of the financial statements?
– What means does management use to assure that the financial information is reliable?
– An audit committee is comprised of several members of the board of directors. The committee acts as the liaison between the independent auditor and the corporation. What is the responsibility of the Audit Committee of the Board of Directors?
· Discuss the audit report:
– Who is the corporation’s independent auditor and in which city is the auditor located?
– List and explain the types of audit opinions.
– Read the auditors’ opinions of the companies and indicate the type of opinion expressed by the auditors.
– An auditor’s report will state the responsibility of the auditor. What is the responsibility of the auditor with regard to the financial statements.
– What guidelines do the auditors use to conduct the audit?
– Do the auditors believe the financial statements were presented fairly? What statements in the audit opinion support your conclusion?
· Present a comprehensive financial statement analysis. Prepare the common size statements and all the ratios and amounts for the measures given below for the three most recent years for both of your companies and present in a clear tabular form. Then discuss each category given below.
– Common-Size financial Statements
– Ratios from chapter 15 ( I can scan the pages. It is GARRISON NOREEN BREWER- MANAGERIAL ACCOUNTING 15TH EDITION)