Interpreting Annual Reports

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In addition to the financial statements in an annual report, there are three other important components that are usually part of the annual report; Management’s Discussion and Analysis (MD&A), a report on internal control, and a report from an independent accounting firm. Access the annual report (for the most recent year) for PepsiCo and review these three components.
Summarize or answer the following:

Discuss the main points of the information contained in the MD&A.
As indicated in the report on internal control, what independent accounting firm audited the consolidated financial statements for PepsiCo? What changes did PepsiCo make to improve its internal controls?

Briefly describe the main points of each paragraph of the report from the independent accounting firm and note the firm’s opinion of the financial statements.

SKU: interpreting-annual-reports Category: