To find the answers, you need to visit the following link (copy and paste into a new window): http://www.ibm.com/investor/tools/guides.phtml Click on Guide to financial statements which is under Help and Feedback on the right hand side of the page. Once a new page appears, read contents of all the links under Statement basics. Under How to Read Annual Report click on Anatomy option and read the information to answer the following questions:

1. What is an annual report? 2. What are the optional elements that are often included in an annual report? 3. What are the elements of an annual report that are required by the SEC? 4. Why does a company prepare consolidated financial statements? 5. What is the purpose and contents of the Management Discussion portion of the annual report? 6. Who prepares the financial statements? 7. What type of information is provided in the statement of earnings (also called income statement or profit and loss statement)? 8. What type of information is provided in the statement of financial position (also called balance sheet)? 9. What is an auditors report?

Get a hold of IBMs 2015 annual report by using Google or download the annual reports from the companys web site or click on the site below (or copy and paste the link into a new window): http://www.ibm.com/annualreport/2015/assets/img/2016/02/IBM-Annual-Report-2015.pdf Locate the report of management (page 74 or 76) to answer the following questions: 10. Who is responsible for the integrity of the financial statements? 11. What does IBM do to assure the effectiveness of their system of internal control? 12. Who is the IBMs Audit Committee composed of? 13. What does the Audit Committee do periodically? 14. Who signed the management report? Locate the Report of Independent Registered Public Accounting Firm (pages 75 or 77) to answer the following questions: 15. What is the name of IBMs independent public accountants firm (auditor)? 16. According to the report of the independent public accounting firm, what is the auditors responsibility? 17. According to the auditors, what did the audit of financial statements include? 18. What does the audit of internal control over financial reporting include?