The SEC 10-K assignment will consist of research to write a paper on an annual SEC 10-K
Question:
The SEC 10-K assignment will consist of research to write a paper on an annual SEC 10-K report filed by AVON PRODUCTS INC with the U.S. Securities and Exchange Commission (SEC). The focus of this assignment is on the financial statements as a whole and the concepts related to the topics covered in this course. (http://www.sec.gov/Archives/edgar/data/8868/000000886815000013/avp10k2014.htm#sE3A7E169E2C7AAFE4506A24C43D8AAF3)
1. What ethical and legal liability relating to accountants and auditors might relate to your SEC 10-K company?
2. What trends in sales, cost of goods sold, and gross profit do you see? Create a small table for your records and refer to percentages in terms of year to year change for dollar values and the gross profit percentage.
3. Review net income and post comments using the techniques you used for gross profit.
4. International Issues: comment on foreign currency issues and the global picture for your SEC 10-K company.
5. Inventory comments: comment on inventory issues using the concepts of materiality and geographic location.
6. Inventory and Sales: comment on issues related to diversity in customer base and issues of internal control.
7. Accounts Receivable and Sales: comment on issues related to the selling and distribution system of your SEC 10-K company and issues of fraud as well as internal control.
8. Challenges and opportunities you see for your company.
9. The management of risk and uncertainty is often included in the MD&A section comments. What do you learn of interest here?
10. Management often explains higher or lower than expected in their comments. Discuss the profitability and other comments in the MD&A section as they relate to our chapters thus on audit strategy, risk, internal control, materiality, and management.
11. Costs and fluctuations are often discussed in the MD&A section. Any comments on your analysis here?
12. Pricing decisions often relate both to knowing your costs as well as to the strategy of pricing. Competition, loss leaders, and other elements may be discussed in the MD&A section. Emerging markets and product lines are also an issue for some companies. What do you learn from your review?
13. Corporate Social Responsibility (CSR) and Sustainability relate to many issues including pollution and the cost of remediation and hazardous wastes. What do you learn about these topics from the SEC 10-K?
14. Contingencies and liabilities: can they be estimated? Are they probable to occur? What do you learn about your company in this area? How might cost issues including profitability relate to these topics for your company?
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