Learning Team assignments build upon each other from Weeks 2-5.

The first step is to go to the website of a publically-traded US company and select the most recent 10-K Form, a legally-required document publicly-traded companies must submit to the Securities and Exchange Commission [SEC] on an annual basis. Among other things, this document contains the opinion of the CPA firm regarding the company's financial statements and adherence to Generally Accepted Accounting Principles [GAAP]. The contents of this form will be the basis of the team assignments in throughout the course.

Consideranddiscussthe specific risks and nature of the company you will be auditing.

Createcomprehensive audit programs for the cash.

Objective:

Sample Size and Methodology:

Testing:

Audit Procedure

Comments/Exceptions

Workpaper Reference

Tests of Controls:

Tests of Balances:

Tests of Transactions:

Analytical Procedures:

NETFLIX, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Year Ended December 31, 2019 2018 2017 Cash flows from operating activities: Net income $ 1,866,916 $ $ 558,929 Adjustments to reconcile net income to net cash used in operating activities: Additions to streaming content assets (13,916,683) (13,043,437) (9,805,763) Change in streaming content liabilities (694,01 1) 999,880 900,006 Amortization of streaming content assets 9,216,247 7,532,088 6,197,817 Depreciation and amortization of property, equipment and intangibles 103,579 83,157 71,911 Stock-based compensation expense 405,376 320,657 182,209 Other non-cash items 228,230 81,640 117,864 Foreign currency remeasurement loss (gain) on long-term debt (45,576) (73,953) 140,790 Deferred taxes (94,443) (85,520) (208,688) Changes in operating assets and liabilities: Other current assets (252,113) (200,192) (234,090) Accounts payable 96,063 199,198 74,559 Accrued expenses and other liabilities 157,778 150,422 114,337 Deferred revenue 163,846 142,277 177,974 Other non-current assets and liabilities (122,531) 2,062 (73,803) Net cash used in operating activities (2,887,322) (2,680,479) (1,785,948) Cash flows from investing activities: Purchases of property and equipment (253,035) (173,946) (173,302) Change in other assets (134,029) (165,174) (60,409) Purchases of short-term investments (74,819) Proceeds from sale of short-term investments 320,154 Proceeds from maturities of short-term investments 22,705 Net cash provided by (used in) investing activities (387,064) 339,120) 34,329Cash flows from financing activities: Proceeds from issuance of debt 4,469,306 3,961,852 3,020,510 Debt issuance costs (36,134) (35,871) (32,153) Proceeds from issuance of common stock 72,490 124,502 88,378 Other financing activities (1,956) 255 Net cash provided by financing activities 4,505,662 4,048,527 3,076,990 Effect of exchange rate changes on cash, cash equivalents and restricted cash 469 (39,682) 29,848 Net increase in cash, cash equivalents and restricted cash 1,231,745 989,246 1,355,219 Cash, cash equivalents and restricted cash, beginning of year 3,812,041 2,822,795 1,467,576 Cash, cash equivalents and restricted cash, end of year S 5,043,786 S 3,812,041 S 2,822,795 Supplemental disclosure: Income taxes paid 400,658 131,069 1 13,591 Interest paid 599,132 375,831 213,313 See accompanying notes to consolidated financial statements. 43