Accounting Assignment: Financial Analysis
Evaluate the current financial condition of Eastman Kodak based on its most recent quarterly report, which can be located at https://www.Kodak.com. Based on your evaluation, discuss the most significant red flags for its public accounting firm to consider.
Assume that you are the PricewaterhouseCoopers audit engagement partner and have assessed Kodak as a high-risk client. Explain the modification you would make to the audit engagement procedures to minimize any potential liability of the firm.
Create an argument to the Kodak shareholders that, despite the long relationship between Kodak and PricewaterhouseCoopers, the public accounting firm maintains its professional independence.
In audits of high-risk clients, determine which requirements in the AICPA Code of Professional conduct are most likely to be breached by the auditors. Provide your rationale.
Analyze the risk of financial fraud at Kodak and how it is most likely to be committed. Based on your analysis of the financial fraud risk areas, discuss the internal controls that should be implemented. Given Kodak filing for bankruptcy, discuss the fiduciary responsibility of the audit committee and board of directors.