1. Based on the information I obtained with the financial statements and 10k what would I see as the biggest risk factor in a subsequent audit of this company?

2. What are 3 areas of audit risk that I would address in my audit?

3. What are the most surprising results I discovered about Johnson and Johnson Company?

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Consolidated Statements of Earnings (USD $) In Millions, except Per Share data, unless otherwise specified Consolidated Statements of Earnings [Abstract] Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Net Income Restructuring (Note 22) Earnings before provision for taxes on income Cash dividends per share Basic average shares outstanding (Notes 1 and 15) Diluted average shares outstanding (Notes 1 and 15) Jan. 01, 2012 % Sales 2012 Jan. 02, 2011 % Sales 2011 Jan. 03, 2010 % Sales 2010 $65,030 20,360 44,670 20,969 7,548 16,153 -91 571 15,491 2,743 18,234 569 12,361 $2.25 12 Months Ended 2,736 2,775.30 100% 31% 69% 32% 12% 25% 0% 1% 24% 4% 28% 1% 19% 0% 4% 4% $61,587 18,792 42,795 19,424 6,844 16,527 -107 455 15,965 -768 15,197 16,947 $2.11 2,751.40 2,788.80 100% 31% 69% 32% 11% 27% 0% 1% 26% -1% 25% 0% 28% 0% $61,897 18,447 43,450 19,801 6,986 16,663 -90 451 16,122 -526 15,596 1,073 15,755 $1.93 4% 2,759.50 5% 2,789.10 62,838 100% 30% 19,200 70% 43,638 32% 20,065 11% 7,126 27% 16,448 0% (96) 492 15,859 483 16,342 821 15,021 2 1% 26% -1% 25% 2% 25% 0% 3 Period Avg 4% 5% 2,749 2,784 Variation 2012 with Avg -3% -6% -2% -5% -6% 2% 5% -16% 2% -468% -12% 31% 18% -7% 0% 0% % increase in 2012 over 2011 5.6% 8.3% 4.4% 8.0% 10.3% -2.3% -15.0% 25.5% -3.0% -457.2% 20.0% #DIV/0! -27.1% 6.6% -0.6% -0.5% Consolidated Statements of Earnings (USD $) In Millions, except Per Share data, unless otherwise specified Consolidated Statements of Earnings [Abstract] Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Net Income Restructuring (Note 22) Earnings before provision for taxes on income Cash dividends per share Basic average shares outstanding (Notes 1 and 15) Diluted average shares outstanding (Notes 1 and 15) Jan. 01, 2012 % Sales 2012 Jan. 02, 2011 % Sales 2011 Jan. 03, 2010 % Sales 2010 $65,030 20,360 44,670 20,969 7,548 16,153 -91 571 15,491 2,743 18,234 569 12,361 $2.25 12 Months Ended 2,736 2,775.30 100% 31% 69% 32% 12% 25% 0% 1% 24% 4% 28% 1% 19% 0% 4% 4% $61,587 18,792 42,795 19,424 6,844 16,527 -107 455 15,965 -768 15,197 16,947 $2.11 2,751.40 2,788.80 100% 31% 69% 32% 11% 27% 0% 1% 26% -1% 25% 0% 28% 0% $61,897 18,447 43,450 19,801 6,986 16,663 -90 451 16,122 -526 15,596 1,073 15,755 $1.93 4% 2,759.50 5% 2,789.10 62,838 100% 30% 19,200 70% 43,638 32% 20,065 11% 7,126 27% 16,448 0% (96) 492 15,859 483 16,342 821 15,021 2 1% 26% -1% 25% 2% 25% 0% 3 Period Avg 4% 5% 2,749 2,784 Variation 2012 with Avg -3% -6% -2% -5% -6% 2% 5% -16% 2% -468% -12% 31% 18% -7% 0% 0% % increase in 2012 over 2011 5.6% 8.3% 4.4% 8.0% 10.3% -2.3% -15.0% 25.5% -3.0% -457.2% 20.0% #DIV/0! -27.1% 6.6% -0.6% -0.5%

Answer rating: 100% (QA)

In Millions except Per Share data unless otherwise specified Jan 01 2012 Sales 2012 Jan 02 2011 Sale... View the full answer