Obtain the financial statements of a company with which you are familiar. The Annual report or 10K report of a publicly-traded company would be a great resource for this problem.

• Identify specific account balances for which substantive analytical procedures would be appropriate and discuss your reasoning for selecting these accounts.
• Describe in detail the type of substantive analytical procedures that would be used for these account balances and why this would be an effective test of the account balance

A B E F C 12 Months Ended 1 Differenc Change Dec. 29, 2019 Dec. 30, 2018 Dec 31, 2017 e 9 Consolidated Statements of Earnings - USD ($) shares in Millions, in Millions 2 3 Income Statement [Abstract] 4 Sales to customers 5 Cost of products sold 6 Gross profit 7 Selling, marketing and administrative expenses 8 Research and development expense In-process research and development (Note 5) 10 Interest income 11 Interest expense, net of portion capitalized (Note 4) 12 Other (income) expense, net 13 Restructuring (Note 22) 14 Earnings before provision for taxes on income 15 Provision for taxes on income (Note 8) 16 Net earnings 17 Net earnings per share (Notes 1 and 15) 18 Basic (in dollars per share) 19 Diluted (in dollars per share) 20 Average shares outstanding (Notes 1 and 15) 21 Basic (in shares) 22 Diluted in shares) $82,059 27.556 54,503 22,178 11,355 890 (357) 318 2,525 266 17,328 2,209 $ 15,119 $ 81,581 27,091 54,490 22,540 10.775 1,126 (611) 1,005 1,405 251 17,999 2,702 $ 15,297 $76,450 $(478.00) -0.586% 25,439 $(465.00) -1.716% 51,011 $(13.00) -0.024% 21,520 $362.00 1.606% 10,594 $(580.00) -5.383% 408 $ 236.00 20.959% (385) $(254.00) 41.5717 934 $ 687.00 68.358% (42) $11,120.00) -79.715%. 309 $(15.00) -5.976% 17,673 $ 671.00 3.7287 16,373 $493.00 18.246% $1,300 $ 178.00 1.164% $ 5.72 $5.63 $ 5.70 $5.61 $0.48 $0.47 $(0.02) -0.351% $(0.02) -0.357% 2,645.1 2,684.3 2,681.5 2,728.7 2,692 2,745.3 $36.40 $ 44.40 1.357% 1.627% B Dec. 29, 2019 Dec. 30, 2018 $17,305 1,982 14,481 9,020 2,392 94 45,274 17,658 47,643 33,639 7,819 5,695 157,728 $ 18,107 1,580 14,098 8,599 2,699 950 46,033 17,035 47,611 30,453 7,640 4,182 152,954 A 24 25 Consolidated Balance Sheets - USD ($) $ in Millions 26 Current assets: 27 Cash and cash equivalents (Notes 1 and 2) 28 Marketable securities (Notes 1 and 2) 29 Accounts receivable trade, less allowances for doubtful accounts $226 (2018, 30 Inventories (Notes 1 and 3) 31 Prepaid expenses and other receivables 32 Assets held for sale (Note 20) 33 Total current assets 34 Property, plant and equipment, net (Notes 1 and 4) 35 Intangible assets, net (Notes 1 and 5) 36 Goodwill (Notes 1 and 5) 37 Deferred taxes on income (Note 8) 38 Other assets 39 Total assets 40 Current liabilities: 41 Loans and notes payable (Note 7) 42 Accounts payable 43 Accrued liabilities 44 Accrued rebates, returns and promotions 45 Accrued compensation and employee related obligations 46 Accrued taxes on income (Note 8) 47 Total current liabilities 48 Long-term debt (Note 7) 49 Deferred taxes on income (Note 8) 50 Employee related obligations (Notes 9 and 10) 51 Long-term taxes payable (Note 8) 52 Other liabilities 53 Total liabilities 54 Shareholders' equity: 55 Preferred stock - without par value (authorized and unissued 2,000,000 shares) Common stock - par value $1.00 per share (Note 12) (authorized 4,320,000,000 56 shares; issued 3,119,843,000 shares) 57 Accumulated other comprehensive income (loss) (Note 13) 58 Retained earnings 59 Stockholders' Equity before Treasury Stock Less: common stock held in treasury, at cost (Note 12) (487,336,000 shares and 60 457,519,000 shares) 61 Total shareholders' equity 62 Total liabilities and shareholders' equity 1,202 8,544 9,715 10,883 3,354 2,266 35,964 26,494 5,958 10,663 7,444 11,734 98,257 2,796 7,537 7,601 9,380 3,098 818 31,230 27,684 7,506 9,951 8,242 8,589 93,202 0 3,120 0 3,120 (15,891) 110,659 97,888 38,417 (15,222) 106,216 94.114 34,362 59,471 $ 157,728 59,752 $152,954 A B E F C 12 Months Ended 1 Differenc Change Dec. 29, 2019 Dec. 30, 2018 Dec 31, 2017 e 9 Consolidated Statements of Earnings - USD ($) shares in Millions, in Millions 2 3 Income Statement [Abstract] 4 Sales to customers 5 Cost of products sold 6 Gross profit 7 Selling, marketing and administrative expenses 8 Research and development expense In-process research and development (Note 5) 10 Interest income 11 Interest expense, net of portion capitalized (Note 4) 12 Other (income) expense, net 13 Restructuring (Note 22) 14 Earnings before provision for taxes on income 15 Provision for taxes on income (Note 8) 16 Net earnings 17 Net earnings per share (Notes 1 and 15) 18 Basic (in dollars per share) 19 Diluted (in dollars per share) 20 Average shares outstanding (Notes 1 and 15) 21 Basic (in shares) 22 Diluted in shares) $82,059 27.556 54,503 22,178 11,355 890 (357) 318 2,525 266 17,328 2,209 $ 15,119 $ 81,581 27,091 54,490 22,540 10.775 1,126 (611) 1,005 1,405 251 17,999 2,702 $ 15,297 $76,450 $(478.00) -0.586% 25,439 $(465.00) -1.716% 51,011 $(13.00) -0.024% 21,520 $362.00 1.606% 10,594 $(580.00) -5.383% 408 $ 236.00 20.959% (385) $(254.00) 41.5717 934 $ 687.00 68.358% (42) $11,120.00) -79.715%. 309 $(15.00) -5.976% 17,673 $ 671.00 3.7287 16,373 $493.00 18.246% $1,300 $ 178.00 1.164% $ 5.72 $5.63 $ 5.70 $5.61 $0.48 $0.47 $(0.02) -0.351% $(0.02) -0.357% 2,645.1 2,684.3 2,681.5 2,728.7 2,692 2,745.3 $36.40 $ 44.40 1.357% 1.627% B Dec. 29, 2019 Dec. 30, 2018 $17,305 1,982 14,481 9,020 2,392 94 45,274 17,658 47,643 33,639 7,819 5,695 157,728 $ 18,107 1,580 14,098 8,599 2,699 950 46,033 17,035 47,611 30,453 7,640 4,182 152,954 A 24 25 Consolidated Balance Sheets - USD ($) $ in Millions 26 Current assets: 27 Cash and cash equivalents (Notes 1 and 2) 28 Marketable securities (Notes 1 and 2) 29 Accounts receivable trade, less allowances for doubtful accounts $226 (2018, 30 Inventories (Notes 1 and 3) 31 Prepaid expenses and other receivables 32 Assets held for sale (Note 20) 33 Total current assets 34 Property, plant and equipment, net (Notes 1 and 4) 35 Intangible assets, net (Notes 1 and 5) 36 Goodwill (Notes 1 and 5) 37 Deferred taxes on income (Note 8) 38 Other assets 39 Total assets 40 Current liabilities: 41 Loans and notes payable (Note 7) 42 Accounts payable 43 Accrued liabilities 44 Accrued rebates, returns and promotions 45 Accrued compensation and employee related obligations 46 Accrued taxes on income (Note 8) 47 Total current liabilities 48 Long-term debt (Note 7) 49 Deferred taxes on income (Note 8) 50 Employee related obligations (Notes 9 and 10) 51 Long-term taxes payable (Note 8) 52 Other liabilities 53 Total liabilities 54 Shareholders' equity: 55 Preferred stock - without par value (authorized and unissued 2,000,000 shares) Common stock - par value $1.00 per share (Note 12) (authorized 4,320,000,000 56 shares; issued 3,119,843,000 shares) 57 Accumulated other comprehensive income (loss) (Note 13) 58 Retained earnings 59 Stockholders' Equity before Treasury Stock Less: common stock held in treasury, at cost (Note 12) (487,336,000 shares and 60 457,519,000 shares) 61 Total shareholders' equity 62 Total liabilities and shareholders' equity 1,202 8,544 9,715 10,883 3,354 2,266 35,964 26,494 5,958 10,663 7,444 11,734 98,257 2,796 7,537 7,601 9,380 3,098 818 31,230 27,684 7,506 9,951 8,242 8,589 93,202 0 3,120 0 3,120 (15,891) 110,659 97,888 38,417 (15,222) 106,216 94.114 34,362 59,471 $ 157,728 59,752 $152,954