Financial Statement Case 8-1

Using the Target Corporations 2021 Fiscal Year Annual Report. Study the audit opinion (labeled Report of Independent Registered Public Accounting Firm) of Target Corporation and the Target Corporation's financial statements. Answer the following questions about the company:

Requirements

1. What is the name of Targets outside auditing firm (independent registered public accounting firm)? What office of this firm signed the audit report?
2. Who bears primary responsibility for maintaining effective internal control over financial reporting? How can you tell?
3. Does it appear that Targets 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 Targets cash balance (including cash equivalents) change during the year ended January 29, 2022? What were the beginning and ending cash balances?
6. Review the notes to the consolidated financial statements, specifically Note 9 dealing with Cash Equivalents. What type of instruments does Target consider to be cash equivalents?
7. Determine Targets cash ratio as of January 29, 2022, and January 30, 2021. How do Targets cash ratios compare with Kohls Corporation? Explain.