Companies that follow U.S. Generally Accepted Accounting Principles have been provided guidance for the

Companies that follow U.S. Generally Accepted Accounting Principles have been provided guidance for the financial reporting of specific transactions and account groups. As discussed in this unit, the Financial Accounting Standards Board establishes these standards. Accounting for transactions can be simple—such as sales on account—or it can be complicated, in instances such as accounting for an asset retirement obligation.

For this component of the project, refer to the 10-K filing of the publicly traded company YOU have chosen and review the notes to the financial statements. Specifically, look at the explanations of the company’s accounting policies. Typically, the company’s significant accounting policies are identified in Footnote 1. Be sure that this company has been audited in compliance with the Sarbanes-Oxley Act of 2002.

For the purposes of this assignment:
Select THREE of the accounting policies that are most significant to your company. For example, if you select a manufacturing company, the accounting policies related to inventory valuation and identification of obsolete inventory would be significant.
Evaluate how an auditor would assess the audit risk of each accounting policy and what evidence or documentation an auditor may require for examination. [MO1.2]
Provide the auditor’s name and the results of the financial and internal control audit. [MO1.1]
Submit at least a 4-page essay (at least one double-spaced page for each accounting policy) describing each identified accounting standard, its objective, and the implication of the standard for the company in its financial reporting. The following components must be addressed in the essay:
Identify three accounting standards and their objectives.
Describe the effect of each accounting standard on the company’s financial reporting. [MO1.2]
All assignments must have both a cover page and reference listing in APA format.
Assignments must be in Times New Roman, 12pt font and are double spaced. Consult your Student Resources for writing techniques.
Note: To complete the assignment, you will be expected to use and reference the FASB Codification and refer to the Web Resources below.
Web ResourcesYahoo! Finance: http://finance.yahoo.com/
Financial Accounting Standards Board, 2015 U.S. GAAP Financial Reporting Taxonomy:
http://www.fasb.org/jsp/FASB/Page/SectionPage