Research Paper Essay Example | Topics and Well Written Essays - 500 words - 5

Research Paper - Essay Example Subsequently, managing a global company is not an easy task. As such, in order to ensure that the Company’s performance is tracked effectively, Coca-Cola adopts an operating structure as its basis of financial reporting (Coca Cola 10K Report, 2014, p. 6). This structure incorporates six operating groups, each of whose performance is generalized and presented on a consolidated basis. Equally important, with over 500 brands of beverages manufactured, distributed to over 200 countries and consumed in an average 1.9 billion servings, the Coca-Cola Company has a clearly distinguished distribution system. Furthermore, the Company has entered into bottling partnership with other bottlers as a way to ensure that their customers get access to their desirable brands easily. Essentially, there are various risk factors associated with a business that could affects its financial performance over time. In order to ascertain the real performance of a company, the auditors have to establish the different audit risks and performance factors that are associated with a company or an industry. The Coca-Cola Company is faced by various risk factors resulting from its daily operations. Among the factors that may affect the Company’s financial performance include, reduced demand arising from obesity concerns, scarcity of water and other main raw materials, evolving consumer preferences, the ever increasing industry competition brought by new entries, safety and quality of the Company’s products, and foreign currency fluctuations among others (Coca Cola 10K Report, 2014, p. 12-20). As such, the Company should formulate plans and come up with effective procedures that could help the auditors detect the available risk factors for them to fairly state and adjust financial statements. Besides the company’s specific risks, an auditor should analyze the different industry related risks such