Let's resume our examination of Dick's Sporting Goods (Dick's). Return to Dick's Annual Report (see the Continuing

Question:

Let's resume our examination of Dick's Sporting Goods (Dick's). Return to Dick's Annual Report (see the Continuing Financial Statement Analysis Problem in Chapter 2 for instructions on how to access the Annual Report). Now answer the following questions:
1. Look at Dick's latest audit opinion. It can be found on page 43 in Dick's 2014 annual report. Which CPA firm audits Dick's? Is their audit opinion unqualified, qualified, adverse, or a disclaimer?
2. What does the auditor's opinion say about the accounting standards used by Dick's? What does the opinion say about how the audit was conducted? What does the audit opinion say about Dick's internal control?
3. Look at management's report on internal control found on page 37 in Dick's annual report. Look at the auditor's statement on internal control found on page 38. What do these statements tell you?
4. Look at Dick's as of January 31, 2015. Do the of Dick's reflect current or historical values? What is the value of stockholders' equity reported on the latest On the same date as the latest (January 31, 2015), Dick's stock sold for $51.65 per share for a total market value of approximately $6 billion. Why is there a difference?
5. Look over Dick's and footnotes. Look at your answers to questions 1 through 4 above. Now do you think Dick's are understandable, relevant, and reliable?
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...