Annual Report Analysis Pepsico 2014

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Annual Report Analysis PepsiCo 2014 The annual report is the greatest important method for it to convey itself to potential investors. Such as, it would come as no surprise that an annual report helps to present the company in the best light possible without violating any Securities and Exchange Commission (SEC) regulations. Unfortunately, many investors read annual reports but fail to read them effectively. In other words, while annual reports are clearly prepared without any intent to deceive or reflect dishonesty about the business, investors should always read them with a sense of skepticism. In other words, learn how to read between the lines and decipher the actual condition of the company. Oftentimes, essential components of…show more content…
The title is followed by the main body. Made up of three paragraphs, the main body highlights the responsibilities of the auditor, the purpose of the audit and the auditor 's findings. The auditor signs and dates the document, including his address. Qualified opinion in situations when a company 's financial records have not been maintained in accordance with GAAP but no misrepresentations are identified, an auditor will issue a qualified opinion. The writing of a qualified opinion is extremely similar to that of an unqualified opinion. A qualified opinion, however, will include an additional paragraph that highlights the reason why the audit report is not unqualified. Adverse opinion the worst type of financial report that can be issued to a business is an adverse opinion. This indicates that the firm 's financial records do not conform to GAAP. In addition, the financial records provided by the business have been grossly misrepresented. Although this may occur by error, it is often an indication of fraud. When this type of report is issued, a company must correct its financial statement and have it re-audited, as investors, lenders and other requesting parties will generally not accept it. Disclaimer of opinion on some occasions, an auditor is unable to complete an accurate audit report. This may occur for a variety of reasons, such as an

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