CONCLUSIONS: Given the procedures you have performed in parts 1A, 1B and 2A, which financial statement accounts do you believe should have been of particular interest the auditor during the CURRENT YEAR audit of the same company chosen in part 1. Identify three specific accounts you would specifically want to spend your audit time on due to higher Risk of Material Misstatement (RMM). Then for EACH of the three accounts identified document the reasons why you have identified each account has higher RMM based on the work one in Parts 1A, 1B, and 2A.

NOTES: More analysis is REQUIRED other than "Cash because it increased or is a high risk/fraud area". You need to a) identify a specific account from the financial statements AND b) support this accounts increased risk assessment with a minimum of TWO pieces of evidence from the work done in part 1A, 1B, and 2A. One piece of evidence MUST be a link to the RATIO work done in Part 1B. This should be approximately 1 page long.

RISK #1:

RISK #2:

RISK #3:

1 71 1 1 Amazon.com Inc. 2 Consolidated Balance Sheet: Assets 31 4 US$ in millions 5 Assets 6 i Cash and cash equivalents Marketable securities 8 i Inventories Accounts receivable, net Other 111 Accounts receivable, net and other 12 1 Current assets 13 i Property and equipment, net 14 1 Operating leases 15 1 Goodwill 16 1 Other assets Long-term assets 18 Total assets 91 Dec 31, 2018 31,750 9,500 17,174 13,310 3,367 16,677 75,101 61,797 Dec 31, 2019 36,092 18,929 20,497 17,663 3,153 20,816 96,334 72,705 25,141 14,754 16,314 128,914 225,248 Dec 31, 2017 20,522 10,464 16,047 9,692 3,472 13,164 60,197 48,866 10! 1 1 14,548 11,202 87,547 162,648 13,350 8,897 71,113 131,310 171 19) 38,192 34,616! 20 LIABILITIES AND SHAREHOLDERS' EQUITY 21 Accounts payable 22 Current portion of lease liabilities, operating leases 23 Current portion of lease liabilities, finance leases 24 Current portion of long-term debt 25 Other 26 Accrued expenses and other 27 | Unearned revenue 28 Current liabilities 29 current portion 30 portion 47,183 3,139 9,884 1,307 18,109 32,439 8,190 87,812 22,696 17,095 7,720 1,371 14,572 23,663 6,536 68,391 5,839 100! 12,231 18,170 ! 5,097 57,883 1 9,650 8,438! 25,141 14,754 16,314 128,914 225,248 14,548 11,202 87,547 162,648 13,350 8,897 71,113 131,310 1 1 38,192 34,616 47,183 3,139 9,884 1,307 18,109 32,439 8,190 87,812 22,696 17,095 39,791 23,414 12,171 75,376 163,188 7,720 1,371 14,572 23,663 6,536 68,391 14 1 Operating leases 15 ) Goodwill 16 i Other assets 17 1 Long-term assets 1 18! Total assets 191 20 LIABILITIES AND SHAREHOLDERS' EQUITY 21 Accounts payable 22 Current portion of lease liabilities, operating leases 23 Current portion of lease liabilities, finance leases 24 Current portion of long-term debt 25 Other 26 Accrued expenses and other 27 Unearned revenue 28 Current liabilities 29 current portion 30 portion 31 Long-term lease liabilities, excluding current portion 32 Long-term debt, excluding current portion 33 Other long-term liabilities 34 Long-term liabilities 35 Total liabilities 36 37 Common stock, $0.01 par value 38 Treasury stock, at cost 39 Additional paid-in capital 40 Accumulated other comprehensive loss 41 | Retained carnings 42 Stockholders' equity 43! Total liabilities and stockholders' equity 5,8391 100 ! 12,231 18,170 5,097 ! 57,883 1 9,650 9,650 23,495 17,563 50,708 119,099 8,4381 8,438! 24,743 12,5371 45,718 103,601 ! -none 5 (1,837) 33,658 (986) 31,220 62,060 5 (1,837) 26,791 (1,035) 19,625 43,549 5! (1,837) 21,389 (484); 8,636 27,709! 225,248 162,648 131,310