Visit http://www.pearsonhighered.com/Horngren to view a link to Target Corporation’s 2015 Fiscal Year Annual Report. Study the audit opinion (labeled Report of Independent Registered Public Accounting Firm) of Target Corporation and the Target Corporation financial statements. Answer the following questions about the company:

Requirements
1. What is the name of Target’s outside auditing firm (independent registered public accounting firm)? What office of this firm signed the audit report?
2. Who bears primary responsibility for maintaining effective internal control over financial reporting? How can you tell?
3. Does it appear that Target’s internal controls are adequate? How can you tell?
4. What standard of auditing did the outside auditors use in examining the Target financial statements?
5. By how much did Target’s cash balance (including cash equivalents) change during year ended January 30, 2016? What were the beginning and ending cash balances?
6. Review the notes to the consolidated financial statements, specifically Note 11 dealing with Cash Equivalents. What type of instruments does Target consider to be cash equivalents?
7. Determine Target’s cash ratio as of January 30, 2016, and January 31, 2015. How do Target’s cash ratios compare with Kohl’s Corporation as illustrated in the chapter? Explain.