Purpose: To help familiarize you with the financial reporting of a real company to further your understanding of the chapter material you are learning.
The Bombardier Annual Report in MyAccountingLab contains much more information than what is reported in the financial statements and related notes. In this case, you will explore other information presented in the annual report to determine the responsibilities of both management and the independent auditors for the annual report content. In addition, you will investigate the respective roles of both management and the auditors in the company’s internal control system.
Refer to the Bombardier Annual Report in MyAccountingLab. You will need to find and then read the following reports:
■ Management’s Responsibility for Financial Reporting
■ Independent Auditors’ Report to the Shareholders of Bombardier Inc.
Requirements
1. Who is responsible for the information in the consolidated financial statements and the annual report? How are these responsibilities fulfilled?
2. Who were the independent auditors? Under what standards did they conduct their audit? What was their opinion of the audited financial statements? Who do the auditors primarily interact with and report to?
3. Who is responsible for establishing and maintaining adequate internal control over financial reporting? Is the effectiveness of the internal controls ever reviewed? Do you think that internal control procedures are necessary? Why?