ACCT 501 Financial Accounting- understanding of your company and its business


Progress Report

The purpose of this report is to help you develop a basic understanding of your company and its business environment.1 The annual report, 10-K, and the proxy statement of your company, along with other readings and resources, will help you complete this report.

A. Company background

1. What is the ticker symbol of your company? Identify the stock exchange(s) where you company stock trades.

2. Read the auditor’s report included in the annual report of the company, and explain its purpose. Identify the name of the auditing firm.

3. Briefly explain the major operations of your company. What products does it sell and/or services does it render?

B. Developments relating to the company

Identify two recent events of significance (e.g., layoffs, reorganizations) that have affected the company. You can obtain this information using the company’s website.

Alternatively, you may use other financial news services available in print or on the internet, such as Yahoo Finance, Fortune, Forbes, and the Wall Street Journal. 

C. Ethical issues 

High profile financial scandals including Enron and Worldcom have heightened concerns regarding managerial ethics. Identify one or more recent ethical issue(s) by the company and/or industry (e.g., accounting fraud, management integrity) and explains how your company/industry responded to the issues. 

Overall performance: 

1. What is your assessment of the overall performance of your firm in recent years? How does your firms’ performance compare that of the competitor? 


1. What is your assessment of the profitability of your firm in recent years? How does your firms’ profitability compare that of the competitor?

2. Compare the cash flows from operating activities for your firm with the net income for the most recent year. What factors have contributed to the difference between these two numbers?

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