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Audit Report - Amazon

In: Business and Management

Submitted By gaby3
Words 1778
Pages 8
ACT 410
10-K Annual Report
Amazon.com, Inc.
Miriam Batres
Part I -

1. What is the purpose of the Management Discussion and Analysis (MD&A)?

The Management Discussion and Analysis section of the company’s annual report is a report from management to shareholders that accompanies the firm’s financial statements. It explains the period’s financial results and enables management to discuss topics that may not be apparent in the financial statements in the annual report.[1] The MD&A section also emphasize on other parts of the company and explain what accounting methods they use.

2. Summarize the SEC requirements for the presentation of the MD&A.

The SEC requires that the MD&A present the most important and relevant information to the investors or anyone who reads the MD&A. The SEC emphasizes that the MD&A shouldn’t be a recitation of financial statements in narrative form; it should come from management in terms that everyone can easily understand. The SEC emphasizes the following: overall presentation and focus of MD&A, an emphasis on analysis of financial information, known material trends and uncertainties, key performance indicators, including non-financial indicators, liquidity and capital resources, and critical accounting estimates. [2]

Part II -

3. What types of investments does the company hold?

According to the Annual Report, amazon invests in money market funds, corporate debt securities, U.S. government agency securities, asset backed securities, and foreign government and agency securities.
Amazon generally invests their excess cash in investment grade short- to intermediate-term fixed income securities and AAA-rated money market funds. Such investments are included in “Cash and cash equivalents,” or “Marketable securities” on the accompanying consolidated balance sheets, classified as available-for-sale, and reported at fair…...

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