Auditing

This assignment involves the financial statements and SEC filings for San Diego company llumina Corporation on February 13, 2018 - the annual filing on Form 10-K for the company's year ended December 31, 2017.There is a section beginning on page 41 which includes the auditor's report(opinion) and the company's audited financials and footnotes.

Also note beginning on page 25 is a section titled "Management's Discussion and Analysis" - where results of operations are described in detail, with comparisons between years.

Four questions:

1.Look at the balance sheets for both years - what current asset or liability had the biggest % change from one year to the next, either positive or negative?

2.What do you think about the trend in earnings over the past three years?

3.Does the company have any obvious cash flow problems?

4.Realizing that we are only in the first weeks of the class, what do you think would be the most difficult balance sheet account to audit?