Module 4 – Case
It is not always easy to read and understand financial statements. Format and standards are important for comparisons across companies and over time. It is now time to look closer at the agencies creating and enforcing the standards.
Search the course background information, the Internet and/or the Cyber Library in addition to the Starbucks annual reports. Discuss the terms listed below. Explain why the following concepts/ governing agencies are important to financial statements in general and to Starbucks.
• Financial Accounting Standards Board (FASB)
• Generally Accepted Accounting Principles (US GAAP)
• American Institute of Certified Public Accountants (AICPA)
• International Accounting Standards Board (IASB)
• International Financial Reporting Standards (IFRS)
• Securities and Exchange Commission (SEC)
• Public Company Accounting Oversight Board (PCAOB)
• Annual report; and
• 10-K, 10-Q, and 8-K
• What accounting standards are followed by Starbucks?
• Which public accounting firm audits Starbucks?
• What is the purpose of an external audit?
Incorporate responses to the questions above in an organized format. Start with an introduction and end with a conclusion/summary. Use headings and subheadings to organize the essay. Do not forget to include references in APA format. The suggested length is minimum five pages.