Coca Cola Auditing Project

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AIM 6334 Auditing and Assurance Service
Research Project

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Li-chung Lee
Kung Ya Cheng
Jui-Ping Lin

Table of Contents
I. Introduction:…………………………………………………………………………………….P.3~4 II. Ch 1: The client acceptance/continuation process, including establishing an understanding with the client……………………………………………………………………………………P.4~5 III. Ch2: Obtaining an understanding of the entity and its environment, including internal control. …………………………………………………………………………………………………………P.5~6 IV. Ch3: Preliminary Engagement Activities……………………………………………………...P.6 V. Ch4: Assess Risk and Establish Materiality…………………………………………………..P.7~8 VI. Ch5: Consider Internal Control………………………………………………………………P.9~11 VII. Ch6: Plan the Audit…………………………………………………………………………..P.11~14 VIII. Ch7: Complete the Audit……………………………………………………………...........P.15 IX. Ch8: Evaluate results and issue an audit report……………………………………………….P.16 X. Reference…………………………………………………………………………………………P.17 XI. Attachments…………………………………………………………………………………..P.18~23

I. Introduction:
The Coca-Cola Company (Symbol: KO) was incorporated in September 1919 under the laws of the State of Delaware and succeeded to the business of a Georgia corporation with the same name that had been organized in 1892. The Company is the manufacturer, distributor and marketer of nonalcoholic beverage concentrates and syrups in the world. Finished beverage products bearing its trademarks, sold in the United States since 1886, are now sold in more than 200 countries. Along with Coca-Cola, the Company markets nonalcoholic sparkling brands, including Diet Coke, Fanta and Sprite. It manufacture beverage concentrates and syrups, which the Company sells to bottling and canning operations, fountain wholesalers and some fountain retailers, as well as finished beverages, which the Company sells to distributors. The Company owns or licenses more than 450 brands, including diet and light beverages, waters, enhanced waters, juices and juice drinks, teas, coffees, and energy and sports drinks. The Company is one of numerous competitors in the commercial beverages market. Of the approximately 53 billion beverage servings of all types consumed worldwide every day, beverages bearing trademarks owned by or licensed to the Company account for approximately 1.5 billion.[1]The reason we chose this company is because it has enormous market share in countries around the world. In order to expand its market share, The Coca-Cola Company cooperated with the major fast food chain company. Today, The Coca-Cola Company become a well known and globalization company. We want to know how it can be sustainability and venerability company in the world. From its reports, we also found out it has tremendous benefit from its advertising. In this paper, we concern that how the auditors build a good audit plan in such large company and such complex business.

II. Ch1: Understanding of the client
There are five major reasons that we consider to accept The Coca Cola Company to be out client.[2] Management Integrity
Based upon assertions of management ranging from the existence of an element in the financial statements to disclosures of information regarding that element, we examines The Coca Cola Company financial statements that are no responsible practitioner would knowingly place reliance on assertions of a client's management which had questionable integrity. Relationships with Other Professionals

We will follow the GAAS requirement to communicate with the predecessor auditor prior to committing to provide audit services to The Coca Cola Company. Matters of interest include the opinions issued by the predecessor auditor, resignation of the prior auditor or the refusal to stand for reelection, disagreements between the prior auditor and management regarding accounting principles or auditing procedures and any "opinion shopping" issues. Inquiry of other professionals having dealings with the client should, however,...
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