CAN SOME ONE SUMMARY THIS FOR ME:

I need bullets points for a powerpoint. THE BULLETS I HAVE SEEM TO ME VERY LONG AND I NEED IT TO BE AND LOOK NOT SO EXTENSIVE EACH SLIDE.

it's about starbucks company for auditing and theory class:

ACCOUNTING ISSUES

The net sales for Starbucks reduced in the year 2020 compared to 2019. This is due to the increase in interest expense by $57 million, the tax rate from 19.5% to 20.6%, and a decrease in the net gains from certain operations by $623 million (SEC, 2020). For the year 2019, the interest expensed increased compared to that of 2018 to $161 million, which affected the overall income. There is a downward trend in the net income gains for the company from 2018-2020. The figure for 2020 was especially low compared to the previous year, a factor that can be attributed to a decline in sales due to the effects of the Covid-19 pandemic, which saw the company adjust to the standards provided by the government, such as reducing the number of employees and hours of operations. These measures resulted in low production for the company across the globe.

Management Discussion and Analysis

The company faces an enormous amount of risk, a factor that is linked to consumer preferences, reliance on third parties such as suppliers, and the risks associated with technology and data transmission. Starbucks has implemented several strategies to mitigate the risks that are present in the market, such as ensuring that its software is updated to manage any security threat to its information. They also have to undertake aggressive marketing campaigns to ensure that they are well informed on consumer preferences.

The three reporting segments are reviewed to ensure that the costs associated with them are properly reported and recorded in the company financial reports. Its n auditors duty to ensure that all the auditing policies are used when reporting on all the financial information about the company. The company has invested a lot in it American operations, and this is reflected in their net income returns for the year 2019 and 2020 compared to its international operations. This has been highly attributed to the Covid-19, royalty relief granted to licenses on international operators, and restructuring expenses. However, the American operator managed to managed declined earnings due to the benefits it received from CARES Act and CEWS (SEC, 2020).

In accordance with Sec 404(b) of the SOX Act, the company has disclosed all information related to the quantitative and qualitative information on the risks they face. Management also shares the depth of its operation. The same is evident when it comes to accounting principles. For example, as of September 2019, the company changed its accounting method for accounting for leases. The disclosure of this information will aid in the reporting of data used based on the PCAOB standards.

Audit Findings

Starbucks relies heavily on third parties for the supplies of materials and for development. For example, for its key ingredients, such as the arabica coffee, Starbucks relies on its international suppliers to ensure that the coffee is supplied to all its outlets. It also relies on Nestle, its development partner, to sell and distribute products. Failure on any of the key partners would mean that the business is in dire straits and might even lead to closure. Though the company current liability ratio has reduced from 19.28% to 13.58%, the company is still in a capable position for settling its short-term obligations, which is within 45 days, a period shorter than the recommended 90-days.

For an auditor, it is important to pay particular attention to the payroll and any changes that might affect its outcome. In the case of Starbucks, the company had to reduce the number of employees in all its stores to comply with the government regulations to restrict the spread of Covid-19. The company incurred a cost of $15.2 million, and though the company was able to receive compensation in the form of benefits from the government relief fund of $151 million, the impact on the company growth was high compared to the figures from the previous year.

The production costs and the operating costs for the company for the year 2020 increased compared to 2019. This has been linked to Covid-19 since the company had to close down or reduce production in many of its stores. The company effected controls to ensure that the company does not face harsh conditions. These included tax cuts, taking advantage of the decrease of the general and administrative expenses, closure of certain stores, and the offsetting and overlapping of costs. This helped the company avoid reporting a loss. It also increased its income to its equity investees by $25 million. To properly ensure accurate deduction of these figures, the use of the reverse system of calculation where trends are analyzed, estimates on shrinks and the difference in physical counts was an effective method of determining if proper procedures were followed.

The recording of capital acquisition and the repayment cycle is important in determining how capable an organization is when it comes to settling its long and short-term obligations as well as how it is capable of maintaining investor confidence. In the case of Starbucks Corporation issued an aggregate of $500 million to be paid by 2020while other payments were being scheduled for 2030 and 2050 (SEC, 2020). This form of declaration demonstrates the company's confidence, and investors will hold the management accountable. The same can be said about its interest notes on payments which are due by 2030 and 2050. The publication of such information acts as a reassurance to its partners in the industry.

The cash and cash equivalent for the company for the year 2020 was $4,350.9 million. This is enough to cater for the $3million on unsecured commercial paper, which is due in the next 397 days. However, with the current financial status of the company and the slow growth, the company faces the possibility of being unable to meet its expanded credit facility, which is due to mature in March 2022.

Audit Firm

An audit firm should ensure that they comply with all the government regulations and follow the set accounting principles when it comes to evaluating the financial statements and the operations of an organization. The firm also needs to be registered as an auditing company. The auditors for the company were Deloitte $ Touche LLP. It is also important to collaborate with the internal auditors of all the stores, both local and international, to ensure that one gets all the information needed to reach a conclusion of the financial condition of the company.

Conclusion

Auditing for an organization that has numerous operations, especially those operating in foreign nations where the accounting procedures and policies might be different, is a difficult task for an auditor. Hence it requires constant collaboration with the internal auditors and the management to ensure that information is verified and properly documented. While looking into the financial information of Starbucks, one is provided with a detailed account of all aspects of operations and the financial situation of the company. The information gathered will also be useful for other parties such as the investors and suppliers who will use the information to know the financial status of the company and the matters affecting its progress. The use of a reputable firm in conducting audit reports also adds to investor and suppliers confidence in the information being presented.

In the case of Starbucks, the Covid-19 pandemic has dealt a major blow to the company's growth and financial stability. However, the company has managed to cushion itself from facing dire conditions like many in the industry. Government relief programs have also assisted in ensuring the company did not close all its stores. Nevertheless, Starbucks performance through this period is an indication of a strong and stable company, and with the Covid-19 restrictions being lifted, the company has high hopes of recovering its financial position. Though its growth showed a decline from the previous year, one needs to note that the closure of businesses was the main contributor to the decrease and that the company did not suffer from any other issues which might have contributed to the decrease. Furthermore, the company has placed mitigating measures to move past the harsh conditions, this includes the pick-up orders and the direct delivery to customers.

• NO MISSING INFORMATION. I JUST NEED A SUMMARY OF EACH PART.