Audit Risk Analysis of the Coca-Cola Company

Powerful Essays
Audit Risk Analysis Project
The Coca-Cola Company
Kimberly Williams
Liberty University

MEMORANDUM
To:
From: Kimberly M. Williams, CFE
Subject: Audit Risk Analysis of The Coca-Cola Company
Date: August 14, 2011

I have carefully used information derived from the company and the Securities and Exchange Commission (SEC) to assess the risk of accepting The Coca-Cola Company as an audit client. My research was based on careful analysis of recent developments and key items including recent financial statements and business ratios.

The financial condition of the company included a comparison of the financial ratios of The Coca-Cola Company against the industry. This analysis was designed to provide a framework for assurance in the performance of an audit. The risk assessment included an analytical identification of areas of concern. Finally, having identified and assessed risk, my recommendation is that we accept The Coca-Cola Company as an audit client.

Enclosure: Supporting documentation.

There are four major reasons that we will consider in our decision on whether to accept The Coca Cola Company to be our client.
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 examine The Coca Cola Company financial statements.
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, not be limited to the

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