Planning Memo - A large process risk for The Coca-Cola...

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A large process risk for The Coca-Cola Company is related to its work with research and innovation. Coca-Cola has pushed itself to the top by holding over 3500 beverage products. These have all been obtained through either acquisition or new development. When assessing the risk of creating invaluable or unsuccessful products, one audit assertion that becomes the most concern to the financial statements is valuation. Placing an exact number on line items such as accounts receivable and intangible assets can become difficult. However, through various control and procedural tests, auditors should be able to get as close to a correct value as possible. The valuation of intangible assets can be difficult to quantify because the value is based on the outside market. For example, a trademark may be worth a large amount of money to a company when a product is first introduced but once competition creates their similar products, the trademark may reduce in value. Because of this, it is important for management to assess the
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This note was uploaded on 11/14/2011 for the course ACC 453 taught by Professor Grenier during the Spring '11 term at Miami University.

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Planning Memo - A large process risk for The Coca-Cola...

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