Individual homework #1
Jin Huang
BA 528
Q 1-10 P&G’s auditor was the firm Deloitte & Touche LLP. The auditor utilizes the following specific language in expressing its opinion: In our opinion, such Consolidated Financial Statements present fairly, in all material respects, the financial position of the Company at June 30, 2012 and 2011, and the results of its operations and cash flows for each of the three years in the period ended June 30, 2012, in conformity with accounting principles generally accepted in the United States of America. ("10-K",p35) The auditing firm should responsibility to plan and perform the audit. And make sure the financial statements did not have mistake or fraud. The auditor's job is to express the opinion on the financial statements.

Q 1-14 The primary function of an auditor is to plan and perform an audit to conclude that the financial statements and make sure the statements did not have erroneous or fraudulent material misstatements. The auditor's expert opinion of whether or not the financial statements accurately depict the company's current problem which produced by accountant.

E 2-31 a. Staples, Inc. ($ millions) | Amount | Classification | Sales | $24,381 | I | Accumulated depreciation | 4,067 | B | Depreciation expense | 408 | I | Retained earnings | 6,694 | B | Net income | (211) | I | Property, plant and equipment, net | 6,030 | B | Selling, general and admin expense | 4,884 | I | Accounts receivable | 1,816 | B | Total liabilities | 6,144 | B | Stockholders' equity | 6,136 | B | b. Total Assets=Total Liabilities+Stockholder's Equity Total Assets=$6,144+$6,136=$12,280 Sales-Total Expenses=Net Income $24,381-Total Expenses=-$211 Total Expenses=$24,592

c. Profit margin=Net incomeSales Profit margin=($211)$24,381≈-0.00865 Total