Simulation 3: SEC Registrant – Part I
Purpose: The primary purpose of this case is to help you become familiar with the content of filings that public companies (“Registrants”) include in various filings that they make with the Securities and Exchange Commission. As a public accountant you will need to be very well versed in all accounting and auditing matters since in the eyes of the SEC, the independent registered public accounting firm is considered “Expert” in accounting and auditing.
Required: To successfully complete this case you will need to search for and analyze various reports and information contained on the selected Company’s web site and/or on the SEC web site and perhaps, other sites as well. The financial and proxy information should be from the most recently filed Annual Report on Form 10 K (which for many companies on the list could be the year ended December 31, 2020) and the Proxy Statement, which for December 31, 2020 year-end companies was most likely filed in the March to May, 2021 timeframe. In preparing your report, where noted in each question, please set forth the exact source of the information you cite for each question. (For example – Form 10 K, Item 1, Business). For some questions, you may wish to include a copy of certain documents as an attachment to your case.

PICK YOUR OWN COMPANY – INDIVIDUAL PROJECT

Briefly describe (and cite source for each):
the company,
the location of its corporate headquarters,
its business,
its area of operations,
major products
operating segments,
major competitors,

Describe at least 5 risk factors and the possible impact on the Company if it does not successfully manage these risks. ( cite source)
Why would auditors want to know about their clients’ business-related risks?

Describe The Company’s audit committee and its duties. (cite sources for each)
Who is the designated financial expert on the audit committee? ( cite source) Does the designation as only one individual as a financial expert seem adequate for the complexity of The Company and the requirements of the Sarbanes-Oxley Act?
Review the audit committee’s report and describe its primary contents.
Describe the Audit Committee Charter

Who is the auditor for The Company? ( cite sources for each)
What were the fees charged for audit services for each of the last two fiscal years?
What were the type and amounts of other fees for services for each of the last two fiscal years?
Describe and conclude on the process used by the Audit Committee to determine the independence of the independent registered public accounting firm.