MICROSOFT CORPORATION 7372 - SERVICES-PREPACKAGED SOFTWARE 10-k report- http://w
ID: 2582455 • Letter: M
Question
MICROSOFT CORPORATION
7372 - SERVICES-PREPACKAGED SOFTWARE
10-k report- http://www.sec.gov/Archives/edgar/data/789019/000119312513310206/0001193125-13-310206-index.htm
Using this information answer the following question:
a. Are your company's financial statements audited by an independent public accounting firm? Find and read the "Report of Independent Registered Public Accounting Firm" (or similarly titled report) in the 10-K. What is the name of your company's audit firm and what type of opinion did it issue? (unqualified, unqualified with modified wording, qualified, adverse or disclaimer). Summarize the responsibilities the auditor assumed regarding the financial statements and internal controls based on their report.
b. Find and read the "Report of Management Responsibilities" or "Certification of Chief Executive Officer/Chief Financial Officer" (or similar titled report) found in the company's 10-K. These reports are required by the Sarbanes-Oxley Act. Who signed it? Summarize the responsibilities the management assumed regarding the financial statements and internal controls based on their report
Explanation / Answer
a)Yes, financial statements of Microsoft Corporation and subsidiries are audited by independent public accounting firm.
The name of the accounting firm is DELOITTE & TOUCHE LLP.Auditors have expressed 'unqualified opinion' on company's financial statements.
Responsibilities of auditors-
-Auditors responsibility is to express an opinion on company's financial statements.
-They are responsible for performing audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that they plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.
Management is responsible for the preparation of the consolidated financial statements and related information that are presented in this report. The consolidated financial statements, which include amounts based on management’s estimates and judgments, have been prepared in conformity with accounting principles generally accepted in the United States of America.
b)The reports as required by Sarbanes-Oxley Act are signed by Steven A. Ballmer(CEO),Amy E. Hood(Executive Vice President and Chief Financial Officer) and Frank H. Brod(Corporate Vice President, Finance and Administration;
Chief Accounting Officer)
Management is responsible for the preparation of the consolidated financial statements and related information that are presented in this report.The Company designs and maintains accounting and internal control systems to provide reasonable assurance at reasonable cost that assets are safeguarded against loss from unauthorized use or disposition, and that the financial records are reliable for preparing financial statements and maintaining accountability for assets. These systems are augmented by written policies, an organizational structure providing division of responsibilities, careful selection and training of qualified personnel, and a program of internal audits.
Management is responsible for establishing and maintaining adequate internal control over financial reporting for the company. Internal control over financial reporting is a process to provide reasonable assurance regarding the reliability of our financial reporting for external purposes in accordance with accounting principles generally accepted in the United States of America. Internal control over financial reporting includes maintaining records that in reasonable detail accurately and fairly reflect our transactions; providing reasonable assurance that transactions are recorded as necessary for preparation of our financial statements; providing reasonable assurance that receipts and expenditures of company assets are made in accordance with management authorization; and providing reasonable assurance that unauthorized acquisition, use or disposition of company assets that could have a material effect on our financial statements would be prevented or detected on a timely basis. Because of its inherent limitations, internal control over financial reporting is not intended to provide absolute assurance that a misstatement of our financial statements would be prevented or detected.
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