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:
Company’s name The Home Dep
...
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:
Company’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
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