QUESTION:

Part 1- The company Starbucks

Provide an overview of the company Starbucks

Part 2. The industry (Please provide as much detail as possible)

Obtain outside information about the company's industry. Address the following:

1. What are the key economic factors about the industry?

2. What are the key success factors, trends, and challenges for this industry?

3. How does your company compare with respect to these factors?

4. What notable accounting considerations are there for companies in this industry?

5. What particular legal or regulatory matters are of concern?

6. What social or environmental matters are of concern?

Part 3. Financial Health (Please provide as much detail as possible)

Analyze the company's financial health over the last three to four years using financial statement ratio analysis. Please ensure that you select only relevant ratios. A "dump" of ratios will not earn any marks. Consider:

1. What ratios are meaningful to the business - liquidity? Debt? working capital?

2. Is this a healthy company? Is it growing?

3. What financial challenges is it facing?

4. How does it compare with the rest of its industry?

Part 4. Audit Plan (Please provide as much detail as possible)

Based on a detailed examination of the financial statements (including key notes) and your knowledge of the company's business and its industry, and financial health please provide a preliminary audit plan. At a minimum, you should consider:

1. What inherent risk factors are there for this industry? This company?

2. What are the high-risk areas from an audit perspective? Why?

3. What are the low-risk areas from an audit perspective? Why?

4. What would you base your initial assessment of materiality on? What would your assessment be?

5. What material types of transactions and transaction cycles are involved?

6. What specific audit procedures would you consider? What would their timing be?

7. How could you potentially use data analytics in your audit approach

8. How will your audit effort be allocated among geographical areas? Among lines of business?

9. Will your audit require reliance on any experts? Which ones? What level of audit staff will be required for the audit?

10. What type of audit report was issued? Which basis of accounting and what auditing standards were used?