Comparative analysis of two international companies Essay

1139 Words Nov 25th, 2013 5 Pages
Comparative Analysis of Two International Companies

Trident University International
Accounting for Decision Making - ACC501

April 22, 2013

Comparative Analysis of Two International Companies
Caribou Coffee Company, Inc. is a leading coffee company in the United States that boasts the second largest premium coffee operation in the U.S. ("Caribou," n.d.). The Frazer Group is an international food services company, based in Finland, that seeks to grow with an optimistic view on it’s already firm grasp on the food service industry ("Frazer," n.d.).
This paper will discuss the accounting standards, external auditing standards, and annual reports of the Caribou Company and Frazier Group. A brief comparative analysis
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Auditing.
According to the Caribou Coffee Company, Inc. Annual Report for the year ending January 2, 2012, and external audit, conducted by Ernst and Young, LLC., used PCAOB standards when evaluating the financial reports presented by the company. Ernst and Young, LLC. reported that there were not irregularities in Caribou Coffee’s financial reports according to these standards ("Caribou," n.d.).
The Frazer Group does not specify standards for external auditing, nor does it cite external audit results in its annual report. It does, however, state that the Chartered Accountants, Pricewaterhouse-Coopers Oy (PwC) had been chosen as auditors for the company ("Frazer," n.d.). According to PwC, IFRS is employed when conducting external audits for Finnish Companies ("PwC," 2013).
Differences in Annual Reports.
The annual report provided by the Caribou Coffee Company, Inc. is an SEC Form 10-K. The statement is very structured, professional, and lacks superfluous graphics or commentary. The financial statements contained in the report are presented well and are easy to follow. The Caribou Coffee Company clearly explains a wide variety of risk factors to their business operations, which could cause a negative impact tot eh company’s profitability. The outlook is presented as a realistic, if not pessimistic, view of the potential for future growth in the premium coffee industry ("Caribou," n.d.).
The Frazer Group’s annual report,

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