Case Study-General Mills Inc. - 3110 Words

Genera2013 Case Study 1: General Mills Inc. Understanding Financial Statements Group 5 Summary This case overall probes into 3 basic financial statements of the company and management’s view as well as auditors comments on it. It teaches about how business ethics and corporate governance works. Case study encouraged us to closely probe into each statements and line items and make us understand it. Few highlighted learning’s are preparation of common-size financial statements, understanding of footnotes, eye opening fact about use of estimates in preparation of financial statement, etc. Overall it was good exercise accomplished with great team efforts. Concepts a. General Mills is one of the largest food companies in the†¦show more content†¦Boards of directors use financial statement to review and supervise the performance of management. Employees, of course, are potential users of financial statements as well. Employees can also be investors, so they need financial reports of the company to decide if it would be worthwhile to invest in the company. Also, companies pay bonuses, promote, and demote employees sometimes based on the company s net income, which is reported on the income statement. (Users of Financial Statements, ref) e. General Mills Inc. selected the independent registered public accounting firm KPMG LLP to conduct an external audit. The first letter from KPMG discusses their review of General Mills Inc. management report on the internal controls over financial reporting as of May 28, 2006. The general responsibilities of General Mills internal controls were listed, as well as the duties and the ethical standards external auditors (KPMG) are held to. The audit reviewed the processes involved with reporting accurate financial information, in addition to verifying that all information was prepared in accordance with the generally accepted accounting principles. The second letter from KPMG discusses the audit report on the consolidated financial statements and related financial statement schedule. In the same way as the first letter, KPMG briefly reiterated the responsibility of theShow MoreRelatedGeneral Mills Inc. Understanding Financial Statements Essay1733 Words   |  7 PagesIntroduction The case study General Mills Inc. - Understanding Financial Statements focuses on the most basic idea of finance analysis. This case is a brief look into the language that is used in the finance world and a start to interaction with auditors. In this case, KPMG LLP, the public accounting firm that was auditing their statements, had sent two opinion letters. The first letter was ensuring that both parties were aware that General Mills had internal control over financial reportingRead MoreAccounting Case Study on General Mills1465 Words   |  6 PagesAccounting Case Study on General Mills General Mills, Inc. Financial Accounting Case Study Module 1: A. 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