Required: Prepare a written report and make an oral presentation describing the key audit risks posed by your selected company. Begin your report with a historical overview of the company and its industry.
Next discuss the potentially problematic non-financial items that you identified for the assigned company such as, a management compensation scheme tied to reported earnings, an upcoming merger, restrictive bond covenants etc.
Then present the results of analytical procedures you applied to your companys financial data. Compute common-sized financial statements and key ratios for a 5 year period. Perform trend and comparative industry analysis. Complete your presentation with summary recommendation regarding whether the given company appears to be an acceptable audit client or alternatively, whether the company would pose an unacceptably high level of audit risk and/or business risk for an audit firm.
Your Selected Company is BEST BUY.