starbucks financials 1

Your task is to research the irregularities, audit the financial statements, and correct the irregularities to put Starbucks back in good standing with the SEC. Your corrections should accompany a formal memo to the SEC explaining the remedy of the irregularities.

Week 1

: Download the materials provided and install Microsoft XML Notepad on your computer. Read

over the financial statements and make sure your professor had given you access to the FASB

Codification.

Week 2

: Use the following data to help you hone in on the financial statement irregularities:

1) The SEC has indicated that the cash carrying value transmitted in the XBRL file does not tie

to the balance sheet number in the printed copy of Starbucks’ 10-K. Find the XBRL element

in the FASB Codification, search the XBRL/XML file, and reconcile the 10-K to the XBRL file

and correct the error. Once identified use a text editor to correct the issue.

2) The value transmitted to the SEC for accounts payable is incorrect as compared to the 10-K.

The error is causing the right side of the balance sheet equation to be off by double the

account’s total value. Find the XBRL tag in the FASB Codification, search the XBRL/XML file,

and reconcile the 10-K to the XBRL file and correct the error. Once identified use a text

editor to correct the issue.

3) The value of retained earnings is overstated as compared to the 10-K. Find the XBRL tag in

the FASB Codification, search the XBRL/XML file, and reconcile the 10-K to the XBRL file and

correct the error. Once identified use a text editor to correct the issue.

4) The Company-operated stores Net Revenue number is understated due to a typographical

error. Find the XBRL tag in the FASB Codification, search the XBRL/XML file, and reconcile

the 10-K to the XBRL file and correct the error. Once identified use a text editor to correct

the issue.

Week 3

: Correct the errors in the XBRL file based on your previous week’s audit. Deliver the modified

XBRL file. Use Microsoft XML Notepad or Notepad to make your modifications. Make sure your file is