Planning is one of the most demanding and important aspects of an audit. A carefully planned audit increases auditor efficiency and provides greater assurance that the audit team addresses the critical issues. Auditors prepare audit planning documents that summarize client and industry background information and discuss accounting and auditing issues related to the client's financial statements.
The Securities and Exchange Commission (SEC) Form 10-K filing rules require management of U.S. public companies to include background information about the business, including discussion and analysis by management about the most recent financial condition and results of operations (referred to as MD&A). While these disclosures are primarily intended for current and future investors, they also provide rich information for auditors, especially during the client acceptance and continuance phase of an audit. Additionally, similar disclosures by a client's competitors in their financial statements may also provide useful industry specific information that can be helpful during audit planning.

Required
a. Visit the SEC's website (www.sec.gov) and locate the most recent Form 10-K filing for The Coca-Cola Company (search for "Coca Cola Co").
b. Review the information contained in Items 1, 1A, and 7 in the Form 10-K. Describe the nature of information included in each of these sections of the Form 10-K and discuss how the information might be helpful to auditors in obtaining an under-standing of the client's business and industry.
c. Locate the most recent Form 10-K filing for PepsiCo, Inc. (search for "PepsiCo"). Review the Items 1, 1A, and 7 disclosures and describe how the review of the PepsiCo, Inc. disclosures might be informative to auditors of The Coca-Cola Company.