Select a publicly traded company using the U.S. Securities and Exchange Commission (SEC) EDGAR System athttp://sec.gov/edgar/searchedgar/companysearch.htmland submit to the instructor for approval. Please note that each student must research a different company. Once the instructor has approved the company selection, obtain theAnnual Report(Form 10K) andProxy Statement(Form DEF 14A) of the company for the immediate past fiscal year. Review these documents in addition other financial information available on the company's Investor Relations Web site to evaluate the following items.

Internal Controls

• Review the report of the independent registered public accounting firm on internal controls. Explain components of the report that meet the criteria established inInternal Control - Integrated Frameworkissued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and the PCAOB.
• Explain management's responsibility relative to internal controls and maintaining the integrity of the accounting information systems.
• Discuss the implications of computer technology on the internal control structure and auditing procedures. Develop data flow diagrams and accounting cycle flow charts that illustrate the relationship between information systems and the accounting process.
• Describe at least two audit tests and procedures designed specifically to assess control risks and the integrity of internal controls over accounting information systems.

Accounting Information System

• Summarize the primary information flows within the business environment and evaluate the relationship between traditional accounting records and their magnetic equivalents in computer-based systems.
• Explain and analyze the differences between batch and real-time processing and the impact of these technologies on transaction processing.