How to Read a 10-K Annual Report | Tips For New Auditors, Onboarding on a New Client, Job Applicants
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- เผยแพร่เมื่อ 1 ต.ค. 2024
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Hi y'all! Today I'm sharing some tips for reading a 10-K (annual report of a public company), focusing on the sections that would be most helpful if you're a new staff (audit or tax), on a new audit client for your firm, for job applicants who are interested in working for a public company or work for / audit a private company and need examples of disclosures for your private report.
Please feel free to add areas you guys focus on when reading a 10-K!
Disclaimer! While these are sections that I recommend to focus on (since it can be overwhelming if you try to absorb everything at once), feel free to read everything or if your supervisor gives you specific instructions, listen to them obviously 😝 This is more for those who do not receive clear instructions, but always feel free to ask for clarification from your supervisors where needed!
Jump around:
00:06 Background and audience this video is meant for
02:12 Navigating to public company filings on Edgar SEC website
03:57 Overview of key forms you'll see during an audit of a public company (10-Q, 8-K, DEF14A, 10-K)
Into the nitty gritty of the 10-K:
07:10 Table of contents of 10-K and general areas we'll focus on
08:12 Business overview
08:56 Risk factors
09:52 Tangent time: for those in college, a tip if you're worried about automation in accounting/audit
11:03 Legal proceedings
11:43 Sections in MD&A to focus on (critical accounting policies, fluctuations from year to year, controls & procedures)
13:50 Sections in financial statements and footnotes to focus on
19:59 If you want to know executive compensation or auditor fees...
22:11 Bloopers
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Catch up on Q&As covering accounting, audit, career, college and life topics • #AskStephie Q&As
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All opinions are my own and are from my personal experiences/ observations. Base your opinions on what is true for yourself.
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Thank you for the content. More content like this wouldn't hurt you
I work in SEC Reporting - I have never clicked on a video so fast 🙌 Great video, Stephie!
Do you still work in SEC reporting?! I just got an offer today with a private company and have never done anything like this before. My experience is heavy tax in public, but I have interest in investments. It’s a staff accounting SEC reporting role 😊
Excellent job on your video, Stephie! You did a great job explaining and providing guidance on the 10-K! I also like how you mention checking a company's performance (income statement) before considering whether you should work for them.
I have gotten serious with journaling and meditating. It's kept me focus and motivated on achieving my tasks. I also got rid of a few bad habits that are not contributing to my goals. I believe these efforts will push me to do well as a UT Arlington student (along with being President of the Exec Board from the Goolsby Leadership Academy)!
I'm reading Atomic Habits by James Clear and it's an amazing book! I highly recommend it to anyone that wants to construct and build a better life for themself!
Finally, Stephie, I will be eating Taco Bueno this coming weekend for the first time. I know you are a pretty big fan so I will try it. Overall, I hope this message is positive and inspiring to others!
This is really helpful. Hope you will make more content like this this year. Thank you Stephie! Wish you and your family a very happy new year ❤️
Thank you for this video, I think this info will be helpful for my class. I have to compare two companies public financials. 😉
This was super interesting and definitely helpful!! The couple times I've looked at a 10K just out of curiosity it's been overwhelming and I didn't want to sit and fully read a 100+ page report lol. Will probably refer back to this once I start full time!
Yayyy I'm so glad it was helpful JP!!
I have a question maybe you or someone on here can answer. I have been watching yours and others videos and still cannot figure it out. What accounting jobs require CPA and are any of them obtainable right out of school or are they all through working your way up?
I am currently going through voc rehab and am trying to put together my proposal so they will pay through masters program instead of just bachelors degree. If anyone can help answer this it is appreciated as I am getting conflicting information trying to google it.
You can get any entry level accounting job without a CPA. Most staff / associate level positions (like staff accountant, audit associate, internal auditor, etc.) ask for minimum a bachelor's degree.
A CPA license is asked for most manager and above positions. So you'd be able to make your way to senior for the most part without the CPA. I have a video detailing this a bit more here:
th-cam.com/video/-QnQA0p8yF8/w-d-xo.html
Omg we have the same phone case !!! Love your videos so insightful 💕💕
Thank You Stephie! I wish I had this four years ago! Very helpful!
I started as an audit associate in one of the mid tier accounting firms in the UK this January and this video was so helpful! I've been really encouraged Stephie to start my own channel and provide content like you! Keep up the great work!
This is super helpful Stephie! I actually have an assignment on reading Target 10-K and I didn't even know where to start haha. Thank god for this video~!
Perfect timing 😁 that'll be an interesting one to read!
Thank you Stephanie! Very helpful.
thank you so much for this video!!🥰🥰
Just had to do a thirty page paper on the Disney 10-K it was brutal
Hang in there, Andrae! You got this and you will get better in time! Ask questions and apply strategies that will help you be productive, efficient, and make good decisions as an auditor!
Thank you so much for this!
Tax folk here. Nice video. 😀
Great video! I really love this content and enjoyed watching it. Thank you very much! It is super helpful to learn from an audit manager who has expertise in external and internal audit.
Thank you so much and happy to be of help 🙏
thank you for the tips, That is very helpful.
Thank you for this. Do you feel like a CFE cert is beneficial for an auditor?
Hi Eileen,
I look forward to hearing Stephie's opinion on this. I don't think it hurts acquiring a CFE. It's a nice additional skill and can help you be a better evaluator of a company's financial statements. It might also get you interested in a forensic accounting career if that is something that intrigues you.
This is such great content! THANKS!!
Great... info, thx u stif
Happy New Year Stephie! great series, as always awesome content, Thank you!
Happy New Year love!! I'm so glad you enjoyed it 😘 Wishing you all the best in this busy season!!
Awesome 😍💋 💝💖♥️❤️
Ay I minored in IT and majored in accounting. The minor comes in handy for 150 credit hours. Trying to pass the CPA exam and get a good accounting job but then definitely want to focus on relearning more IT stuff. Programming is pretty difficult though but rewarding from my little experience so far .
Also this video was very helpful thank you I made sure to take notes.
Do tax accountants look at 10 k reports often?
Usually just the tax related footnote and balances.
Typically people in tax are assigned to audit clients to audit the client's tax provision. They'll typically review the footnote and the audit team will usually tie (or match) the numbers in the footnote to the tax teams work.
My favorite comment has to be “salary, bonuses, stock awards. I mean, damn.” 🤣🤣
I mean..... 🤦♀️🤣🤷♀️😭
@@WithStephie it’s a HUGE number for sure. You’re delivery was impeccable.
I bet if you studied financials before and after 2017 Tax Reform you would see more bonuses prior to it and less bonuses after it.
Prior to TCJA there was a clause under the rules for exec comp that allowed a business to deduct the “performance based” portion over & above $1M base. (i.e. if the company performed really well execs get big bonus and company gets tax deduction for the bonus, if the company didn’t perform well no bonus but not as cash out the door). Then that clause was remove I’m sure many companies have restructured terms for exec comp.
Also - yikes. There just have been the potential for collusion and bad behavior for executives. Talk about audit risk.
🥳 happy new year
Great content Stephie! I work in government so this refresher is really nice. I look forward to seeing more learning videos.
very informational, great video Stephie
Good Vid, really informative!
This was so helpful:) thank you
Love the content! Hope to see more videos for this series :)
hi stephie, did you have to have a Master's degree to advance in your career? :)
Hi Anne,
It's not necessary, however, if you need 30 more credit/semester hours after graduating to be eligible for the CPA exam, working on a master's wouldn't hurt.
Have a graduate academic advisor (particularly one in your business/accounting department) evaluate the progress of your degree. They will let you know how to become eligible for the CPA exam. Make sure to ask questions to the advisor as well.
@@erikdenend4015 thank you for the reply! i am a CPA already but dont have Masters. Im just wondering if Masters is generally a requirement to move up the ladder, not necessarily in the field of internal audit.
@@Anne-sr2xx For your situation, my opinion is no. Your CPA license carries much more weight than a Master's degree. Most people that hire accountants in higher-level positions are going to look at licenses in your resume. They won't care about the Master's degree that much.
Print out and save a few job descriptions on the job you dream of getting promoted. Create a goals list on fulfilling requirements from that job description. Make sure to keep your resume up to date. :)
If you are looking to climb the ladder, the most important advice I would share with others is to build relationships. If you have a specific job title from a department you are interested in, start building relationships with people in that department. If you maintain great relationships with a few of them, then a few will be happy to be added as a referral when you apply for your dream position.
Also, get involved with an organization (particularly one for CPA's). The organization may give you opportunities, like volunteering or receiving career certificates from courses. I hope this information helps.
@@erikdenend4015 thank you so much! I really like your tips! they're so helpful. and yes i will follow your advice. :) again thank you!
@@Anne-sr2xx You're welcome. Good luck!
I'm Alone 😍😥
I'm Alone 😍😥