Visit https://www.pearsonglobaleditions.com/Horngren to view a link to Target Corporation’s 2018 Fiscal Year Annual Report. Study the audit opinion (labeled Report of Independent Registered Public Accounting Firm) of Target Corporation and the Target Corporation financial statements. Answer the following questions about the company:
Requirements 1. What is the name of Target’s outside auditing firm (independent registered public accounting firm)? What office of this firm signed the audit report?
2. Who bears primary responsibility for the financial statements? How can you tell?
3. Does it appear that Target’s internal controls are adequate? How can you tell?
4. What standard of auditing did the outside auditors use in examining the Target financial statements?
5. By how much did Target’s cash balance (including cash equivalents) change during the year ended February 2, 2019? What were the beginning and ending cash balances?
6. Review the notes to the consolidated financial statements, specifically Note 11 dealing with Cash Equivalents. What type of instruments does Target consider to be cash equivalents?
7. Determine Target’s cash ratio as of February 2, 2019, and February 3, 2018. How do Target’s cash ratios compare with Kohl’s Corporation as illustrated in the chapter?
Explain