Audit Videos by Blair Cook. Here Is The Link: Doc /archives/edgar/data/34088/000003408821000012/xom-20201231.htm

Using the SEC 10-K for your company, answer the following questions:
My company is EXXON Mobil. Here is the link of the SEC 10 K
Please make sure all your comment are related to this SEC 10 K and please
answer every questions. Here is the link
https://www.sec.gov/ix?
doc=/Archives/edgar/data/34088/000003408821000012/xom-
20201231.htm
Also to help complete these assignments, you can watch Audit Videos by
Blair Cook. Here is the link
https://www.youtube.com/watch?
v=8OhFbRvMaTc&list=PLggiopuhz0dUchgQpKwTQEiw-Of8WgzB5
Assignment 1
1. Costs and fluctuations are often discussed in the MD&A section. Any
comments on your analysis here?
2. Pricing decisions often relate both to knowing your costs as well as to the
strategy of pricing. Competition, loss leaders, and other elements may be
discussed in the MD&A section. Emerging markets and product lines are also
an issue for some companies. What do you learn from your review?
3.Corporate Social Responsibility (CSR) and Sustainability relate to many

issues including pollution and the cost of remediation and hazardous wastes.
What do you learn about these topics from the SEC 10-K?
4. Contingencies and liabilities: can they be estimated? Are they probable to
occur? What do you learn about your company in this area? How might cost
issues including profitability relate to these topics for your company?
Assignment 2: SEC 10K - Specific Issues for your Company
As our course topics are now focuses on specific audit issues,

provide comments about your SEC 10-K company as they relate
the topics of our most recent weeks, particularly the audit
process and operation cycles including

Audit of the Acquisition and Payment Cycle: Tests of Controls
and Substantive Tests of Transactions, and Accounts Payable
Completing the Tests in the Acquisition and Payment Cycle:
Verification of Selected Accounts
Audit of the Payroll and Personnel Cycle
Audit of the Inventory and Warehousing Cycle
Audit of the Capital Acquisition and Repayment Cycle
Audit of Cash Balances
Assignment 3: SEC 10-K Audit Opinion and Communication

Post the auditor's name, city and state, and date of their letter.
Read their opinion and comment on issues highlighted other
than the standard clean opinion. What issues may have been
included in a management letter to your SEC 10-K company
based on issues you have identified this semester where audit
issues and the management of risk may arise.
Homework 1:
Express your opinion regarding how robotic processing automation (RPA) will
impact the auditing field.
Homework 2
AAB and Company is auditing a large publicly traded company.

The audit of internal controls over financial reporting has been
properly planned and the auditors have already identified
controls to test using a top-down, risk-based approach. What is
the next step? Give examples of procedures that may be
completed in the next step in the audit.
Final Exam
New Phone Inc., a diversified manufacturer, has five divisions

that operated throughout the United States and Costa Rico. New
Phone Inc. has historically allowed its divisions to operate
autonomously. Corporate intervention occurred only when
planned results were not obtained. The corporation’s
management has high integrity, but the board of directors and
audit committee are not very active. New Phone Inc. has a policy
of hiring competent and aggressive people. The company has a
code of conduct, but there is little monitoring of compliance
employees. Management is somewhat conservative in terms of
accounting principles and practices, but employee compensation
packages depend highly on performance. New Phone Inc. does
not have an internal audit department, and it relies on your firm
to review the controls in each division.
Cheryl Smith is the general manager of the Intercept Division.

The Intercept Division produces a variety of standardized parts
for small smart phones. Smith has been the general manager for
the last seven years, and each year he has been able to improve
the profitability of the division. She is compensated based
largely on the divisions’ profitability. Much of the improvement
in profitability has come through aggressive cost cutting,
including a substantial reduction in control activities over
inventory. The periodic FIFO method of accounting for inventory
is used.
During the last year a new competitor, Deflector Inc., entered

Intercept’s markets and has offered substantial price reductions,
intense marketing and friendly customer service in order to grab
market share. Smith has responded to the competitor’s actions
by matching the price cuts and increasing customer service in
the hope of maintaining market share. Smith is very concerned
because he cannot see any other areas where costs can be
reduced so that the division’s growth and profitability can be
maintained. If profitability is not maintained, her salary and
bonus will be reduced.

Smith has decided that one way to make the division more
profitable is to manipulate inventory because it represents a
large amount of the division’s balance sheet. She also knows
that controls over inventory are week. She views this inventory
manipulation as a short-run solution to the profit decline due to
the competitor’s price cutting. Smith is certain that once the
competitor stops cutting prices or goes bankrupt, the
misstatements in inventory can be corrected with little impact on
the bottom line.
Please note is an individual project and reference any external

sources used.
1. Using bullet points evaluate the strengths of New Phone

Inc.’s control environment.
2. Using bullet points evaluate the weaknesses of New Phone
Inc.’s control environment.
3. What factors in New Phone Inc.’s control environment have
led to and facilitated Smith’s manipulation of inventory.

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Using the SEC 10-K for your company, answer the following questions:

My company is EXXON Mobil. Here is the link of the SEC 10 K

3.Corporate Social Responsibility (CSR) and Sustainability relate to many

Assignment 2: SEC 10K - Specific Issues for your Company

As our course topics are now focuses on specific audit issues,

Assignment 3: SEC 10-K Audit Opinion and Communication

AAB and Company is auditing a large publicly traded company.

New Phone Inc., a diversified manufacturer, has five divisions

Cheryl Smith is the general manager of the Intercept Division.

During the last year a new competitor, Deflector Inc., entered

Please note is an individual project and reference any external

1. Using bullet points evaluate the strengths of New Phone

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