Encyclopedia Britannica nd Both companies have similar risk factors which

Encyclopedia britannica nd both companies have

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. (Encyclopedia Britannica, n.d). Both companies have similar risk factors which include changes in consumer preference due to awareness of better nutrition due to obesity risk, inability that companies can innovate in services or products, national and international political problems, these factors would produce Low demand for products affected companies financially.( SEC,2015) b. Compare the nature of Pepsi’s history, business sectors, and
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reportable segments to those of CocaCola’s history? A: c. What is the purpose of the Form Def 14A? What does “Def” stand for? What types of information does a proxy contain? A: According to the article “SEC Form Def 14A” by Kenton, W. (2018), the purpose of the SEC Form Def 14A, is a form that must be filed by or on behalf of a registrant when the vote of a shareholder is required, including information on where the meeting of the meeting will be held. the shareholders and all related information such as the information of the people making the request, providing enough information for the security holders and that way they can vote based on good information. (Kenton, W., (2018) d. Who is the auditor for Pepsico? Who is the auditor for CocaCola? What were the audit fees as a percentage of (1) total revenue, and (2) total assets? Audit fees were not always publicly disclosed. In fact, such disclosure became mandatory only since the year 2000 in the United
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States. Why is public disclosure of audit and other fees paid to the audit firm important? A: According to the information obtained by the SEC in 2015 Def 14A from Coca-Cola Co, the External Auditor was Ernest & Young LLP, for a fee service of $ 29,337,000. (SEC, 2015). The 10-K report for 2015 reported a Total Assets of $ 90,093,000,000 million, with a Total Revenue of $ 44,294,000,000 million.(SEC,2015). In the case of Pepsi Cola, the information obtained by the SEC in 2015 Def 14A, the external auditor was the firm KPMG for a service fee of $ 22,641,000. (SEC, 2015). The 10-K Report of 2015 reported a Total Assets reported were 69,667,000,000, with a total Total Revenue of 63,056,000,000.(SEC, 2015) After the financial disaster in the beginning of the 2000- 2003, the Sarbanes Oxley Act of 2002 was created, in order to make the financial statements presented by public companies more transparent and to have more control of the firms audit fees charged by audits, while exercising greater independence between audited companies and audit firms. (PCAOB Investor Advisory Group, 2012) e. Both managements comment on the fact that internal control over financial reporting has “inherent limitations.” What are those inherent limitations? How does management obtain
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comfort that internal control does not contain any material weaknesses? A: It can be considered as inherent limitations in the audit of internal controls when there is no independence, objectivity and professionalism. According to the PCAOB in “Audit Standard N.5”. (2007), effective internal controls provide reasonable assurance in the preparation of Financial statements; The objective of the auditor in the improvement of internal controls must be based on the evidence that there
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