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Auditors Standards Report of Caribou Coffee and Fazer Group Essay Example

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Auditors Standards Report of Caribou Coffee and Fazer Group

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Auditors Standards Report of Caribou Coffee and Fazer Group. The auditor’s standards report is titled and that the title of the report includes the word independent which intends to convey to the users the unbiasedness of the audit in all aspects and it is addressed to the company, the stockholders or the board of directors which is in the statement of both companies. The introductory paragraph makes the statement that the practice did an audit and lists the various financial statements audited including the balance sheet dates and the accounting period for the income statement and cash flow statement. The report has the scope paragraph which gives a factual statement about what the auditor did in the audit. It states the planning and performance according to the internally accepted auditing standards and states that the audit is designed to obtain reasonable assurance on whether the statement is free of any material misstatement.

The final paragraph of the report gives the auditors conclusion based on the results of the audit (Robert, 1996, p.An analysis of the annual statements of two companies reveal a few differences. While Caribou makes a few deviations from the GAAP in the disclosure to facilitate judgment using supplementary information, Fazer, on the other hand, does not and instead sticks to the GAAP requirements. An example is EBITDA which is the net income of Caribou Coffee Company while excluding various factors such as interest expenses, interest income, and income taxes. Fazer is a group company, therefore, its financial statements are group statements which reflect income from various subsidiaries from other countries. Caribou’s income statement, on the other hand, reflect income from only its operations in the United States where it has various coffee houses. The financial statements for both companies use the horizontal format in the presentation of their information. Additionally, both companies have disclosed their information in a clear manner in line with the provisions of both the GAAP and IAS. Auditors Standards Report of Caribou Coffee and Fazer Group.

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References

Duarte, T. (1994). Incorporating complementary ratios in the analysis of financial statements, Accounting, Management and Information Technologies, Vol. 4, No. 3, 149-162.

Martin, E., & Roberta, A. (1999). The use of International Accounting Standards terminology, a survey of IAS compliance disclosure The International Journal of Accounting, Vol. 34, No.4, 557-570.

Robert, S. (1996). New focus for the international standards on auditing, Journal of International Accounting, Auditing and Taxation, Vol. 5, No. 1, 133-146.

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