Etc and financial disclosure documents filed with the sec

You will be assigned a public company: UNITED AIRLINES for which you will complete an audit risk analysis project. You will assume the role of an audit manager of a public accounting firm who has been asked by an audit partner to assess the acceptability of UNITED AIRLINES as an audit client and to write a memo summarizing this assessment.

You are required to analyze the most recent financial data for your assigned company, which is typically obtained from the company's most recent annual report, the EDGAR website, or any of several online financial databases. You should also obtain other pertinent financial and non-financial data regarding your assigned company. These latter data would include information gleaned from articles appearing in The Wall Street Journal, major metropolitan newspapers, and various business publications concerning the company or its industry; peer group data provided for the company's industry or sub-industry by such investment services as RMA, Dun & Bradstreet, Moody's, etc.; and financial disclosure documents filed with the SEC, such as 8-K auditor change announcements.

• Liquidity — Current ratio, Quick ratio

• Solvency — Debt to assets, Long-term debt to equity

Feel free to use all reference sources available in the Library or online, such as Disclosure, Dun & Bradstreet, Moody's, Robert Morris & Associates, Standard & Poor’s, Morningstar, Value Line, WSJ Index, etc., in preparing your memorandum. Those online sources that supply comparative industry data will be particularly helpful. For a discussion of other factors to consider when evaluating a potential client, refer to your auditing textbook (Boynton & Johnson, 2006).

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