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Running Head: Broad Audit Plan for The Home Depot, Inc. 1 A. Company Information Template A1. Company Information Identify the company’s basic information, including each of the following: Compa... ny’s name The Home Depot, Inc. Company’s date of formation 1978, incorporated in Delaware. Industry in which the company operates The Home Depot sells an array of building materials, lawn and garden products, home improvement products, and provide many services. This make them the world’s largest home improvement retailer. Company’s size in terms of annual sales Net sales for fiscal year 2013: $78,812,000,000 Company’s size in terms of total assets Total assets for fiscal year 2014: $40,518,000,000 Company’s size in terms of employees (all full- and part-time) Total employees at end of fiscal year 2013: 365,000 Total salaried employees at end of fiscal 2013: 22,000 The remaining employees were paid on an hourly or temporary basis. Company’s size in terms of total market value 1,380,000,000 shares outstanding * 76.85 Stock Price at 1/31/14 = $106,053,000,000 Total Market Cap is $106,053,000,000 using the stock price from 1/31/14. Location of company headquarters, including the states and countries in which it operates Headquarters: 2455 Paces Ferry Road, N.W., Atlanta, GA, 30339 The Home Depot, Inc. operates in all 50 states of the U.S., Washington D.C., Puerto Broad Audit Plan for The Home Depot, Inc. 2 Rico, U.S. Virgin Islands, Guam, Canada, and Mexico. A2. Customers and Suppliers Identify the company’s top three customers and suppliers. The company through its stores operate for three main customer classes, and has tailored its customer service style to meet their specific needs: 1. Do-It-Yourself (DIY) Customers 2. Do-It-For-Me (DIFM) Customers 3. Professional Customers Although not named, The Home Depot rely on third-party suppliers throughout the world. A3. Financing Identify the company’s sources of financing. For their sources of financing, The Home Depot relies on proceeds of long-term borrowings, proceeds from sales of common stock, capital and operating leases, and commercial paper programs A4. Related Parties Identify the company’s related parties, including people and other companies The Home Depot did not report related parties in the 10-K filing. A5. Company Life Cycle Identify the current stage in the company’s life cycle. The Home Depot is at the maturity level of the life cycle. Broad Audit Plan for The Home Depot, Inc. 3 A6. Risks Identify three risks associated with this business and/or industry. The Home Depot listed the following three factors on their 10K: 1. Demand for products and services could be negatively impacted by strong competition, and ultimately could decrease Home Depot’s market share. 2. Home Depot’s rapport with customers, their reputation, demand for products and services, and their market share could all be influenced by the company’s inability to identify or respond to customer needs, trends, or expectations. 3. Their achievements are cont [Show More]
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