3-30 (Objectives 3-3, 3-4) Publicly traded companies mustelectronically file a variety of
forms or reports with the U.S. Securities and Exchange Commission(SEC), including
the Form 10-K, which includes the audited annual financialstatements. The SEC makes
most of these electronic documents available on the Internet viaEDGAR, which stands
for Electronic Data Gathering, Analysis, and Retrieval system. Theprimary purpose for
EDGAR is to increase the efficiency and fairness of the securitiesmarket for the benefit of
investors, corporations, and the economy by accelerating thereceipt, acceptance, dissemination,
and analysis of time-sensitive corporate information filed with theagency.
a. Visit the SEC Web site (www.sec.gov) and use the link to“Company Filings Search”
(under “Filings”) to locate the Form 10-K filing for Google, Inc.,for the year ended
December 31, 2015, to answer the following questions:
1. Who was Google’s auditor?
2. Did the audit firm issue a combined or separate report(s) on thefinancial statements
and on internal controls over financial reporting?
3. What type of audit opinion did the auditor provide for thefinancial statements?
4. What was the auditor’s opinion about internal controls overfinancial reporting?
5. What was the report date for the audit report?
b. Visit the PCAOB’s Web site (www.pcaob.org) and use the link to“Auditing” under the
heading for “Standards” to locate the PCAOB’s Auditing Standards.Search the links
to the Auditing Standards to answer the following questions:
1. Where would the auditor locate guidance about changes to theauditor’s report
if Google makes a change in accounting principle that is consideredmaterial?
Identify the appropriate section in the Auditing Standards andidentify the relevant
paragraph(s) within that section that would be applicable to thissituation.
Assume that Google properly reports the change in the financialstatements.
2. Where would the auditor locate guidance to determine the effecton the auditor’s
report if he or she has substantial doubt about Google’s ability tocontinue as
a going concern? Identify the appropriate section and the relevantparagraph(s)
within that section that would be applicable to thissituation.
3. Google’s Form 10-K contains information that is in addition tothe financial statements
and related footnotes. Where would the auditor locate guidance thataddresses
his or her responsibility for this other information and what isthe auditor’s obligation
related to that information? Identify the appropriate section andthe relevant
paragraph(s) within that section that would be applicable to thissituation.