1- Prior to beginning work on this discussion, read Amazon.comâ€™s most recent annual report from www.amazon.com (Links to an external site.). In this discussion, we will determine how sales affect Amazon.comâ€™s Income Statement. After opening its virtual doors on the World Wide Web in July 1995, Amazon.com seeks to be Earthâ€™s most customer-centric company. In each segment, Amazon.com serves its primary customer sets, consisting of consumers, sellers, developers, enterprises, and content creators (Amazon.com, 2016 Annual Report).
For your initial post:
- Go www.amazon.com (Links to an external site.), then select Annual Reports, Proxies and Shareholders Letters, and open Amazonâ€™s most recent annual report.
- Read the income statement, which Amazon.com names as the â€œConsolidated Statement of Operationsâ€ and in â€œNote 1â€”Description of Business and Accounting Policies,â€ under Notes to Consolidated Financial Statements read the subsections titled â€œRevenuesâ€ and â€œCost of Sales.â€
- Then examine Amazon.comâ€™s income statement by addressing the following:
- Estimate the percentage of Amazonâ€™s Sales ending up as Net Income (Loss).
- Estimate the percentage of Amazonâ€™s Sales going to pay for the costs of the goods being sold.
- Summarize the specific criteria necessary before Amazon will recognize a sale as having been completed, and record the related revenue.
- Discuss how Amazon accounts for (reports on its income statement) the shipping costs it incurs to ship goods to its customers.
(250 words total)
2- Prior to beginning work on this discussion, read the 2017 Sarbanes Oxley Compliance Survey (Links to an external site.) from Protiviti consulting firm, and the Section 302: Corporate Responsibility for Financial Reports (Links to an external site.) and Section 404: Management Assessment of Internal Controls (Links to an external site.) from the SOX website. Although it has been over a decade since the enactment of the Sarbanes-Oxley Act (SOX) of 2002, the majority of executives and other professionals agreed, in the above-mentioned survey by the Protiviti consulting firm, that internal control over reporting structure in their organizations has significantly or moderately improved since compliance with the legislation became a requirement.
For your initial post of at least 200 words, visit the Journal of Accountancy (Links to an external site.), click the Financial Reporting tab, and select Internal Control. Select an article on Internal Control over Financial Reporting, and discuss why compliance with SOX Sections 302 and 404 is still a subject of ongoing interest.