Amazon for my publicly traded company. Based on their 10-k form Amazon
reports their accounts receivable on the balance sheet based on accounting
sales records. If they engage in credit sales and let customers buy on account
and record revenue in the form of accounts receivable. This will make the
accounts receivable be overstated. Amazon's stock is also always changing
with the market. It is always rising and falling without warning, this can also
affect the financial statements. There is always changes in pricing and
promotional deals going on with Amazon. This can affect both the revenue but
also the liabilities. They always have deals and coupons if purchased in a
timely manner, this can be a challenge when it comes to the financial side of
things.
There are many tests that could be ran by an auditor to determine the risks.
There can be risk assessments done and internal controls put into place to
identify where the problem is. Even if the outcome isn't resolved there needs to
be assessments and tests done in order to make sure financial statements are as
accurate as they can be.
https://www.sec.gov/Archives/edgar/data/1018724/000101872416000172/am
zn-20151231x10k.htm
