Essay on Starbucks Financial Statement Analysis

3278 Words Nov 16th, 2012 14 Pages
Starbucks Financial Statement Analysis
09/08/2011

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Starbucks Financial Statement Analysis The intent of this paper is to research and analyze the financial statement of Starbucks, a locally originated (yet global) publicly traded, Pacific Northwest Company. Resources used are the 2010 10-K, the DataMonitor company profile, Mint Global, and the NetAdvantage Corporate Social Responsibility reports, as well as several cited online resources. Company Overview Starbucks Corporation originated as a single store in the Pacific Northwest – downtown Seattle, WA in Pike’s Place Market over 40 years ago. The company started in 1971; the corporation was formed 1985. The Starbucks Mission Statement follows: “Our
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Auditors Report The Auditor’s report is designed for the Board of Directors and current Shareholders and Potential investors Starbucks Corporation. It audits the internal control over financial reporting of Starbucks and its subsidiaries in accordance with the Standards of the Public Company Accounting Oversight Board of the United States. The report looks for any misstatements or occurrences of fraud within the company. Auditors are required to plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. In addition, they assess the risk if a material weakness exists, test and evaluate the design and operate effectiveness of internal control based on the assessed risk. It is important for auditors to determine that a company’s internal control over financial reporting includes those policies and procedure that: • Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the business • Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of
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