Chapter 02
TO THE NET
1. COSO was originally formed in 1985 to sponsor the National Commission on
Fraudulent Financial Reporting, an independent private sector initiative which
studied the casual factors that can lead to fraudulent financial reporting and
developed recommendations for public companies and their independent
auditors, for the SEC and other regulators, and for educational institutions.
Five professional associations that sponsored COSO:
2. a. Ford Motor Company
b. Dow Chemical Company
3. The five highest officers are listed. Compensation consists of salary, bonus, stock
4. Report of Independent Registered Public Accounting Firm
Exhibit 2-5 presents the audit opinion separately.
Exhibit 2-6 presents the report on internal controls separately.
Chapter 02
5. Note: This “To the Net” is good at illustrating the relationships of the major financial
statements.
a. $2,801,000,000
b. 1. $2,801,000,000
f. 1. $14,023,000
2. $2,022,000,000
There is a difference in 2008, 2009 and 2010.
Consolidated
Statement of
Shareholders’ Equity
Consolidated
Statement of
Cash Flows
2010
$948,000,000
$944,000,000
2009
$916,000,000
$918,000,000
2008
$815,000,000
$811,000,000
6. The student selects and article and writes a summary. Students will select different
articles and write a summary. These summaries could be used for class
discussions.