Examine the risk factors that management discloses in its Form 10-K and from an accounting perspective (as opposed to Marketing or Management).

Affect on the financial statements using vertical, horizontal, ratio, and chart analysis developed in Stage one.

The following areas of the 10-Ks should be your primary focus: Part 1, Items 1, 1A, 2, 3, and Part II, Items 7 and 8. Part I contains a discussion on the business model, risk factors, properties, and legal issues. Part II contains Management’s Discussion and Analyses, the financial statements and the notes to the financial statements. All these statements are referred to as management assertions. Parts I and II contain discussions on many types of risk that the business may be exposed to. You should read through all these areas. Once you have read through Parts I and II, you are to answer a set of questions at the end of this section of deliverable two. The following narrative elaborates on each area you are to read.