Quality of Earnings

 1. The definition of “quality financial statements” including “quality earnings” 2. Risk factors associated with financial statements 3. The need for information provided outside of the firm being reviewed 4. Useful information that can be obtained from outside sources such as SEC reports 10K and 10Q. This should include a comparison of usefulness of audited financial statements to SEC documents. 5. Select a publically traded company and find its data on the SEC website. Compare this information to that contained in the annual report contained on the company’s web site. Discuss three to five significant items of information contained in each. Include a discussion of which source of information was more informative. 6. Based on your review, develop a roadmap for reviewing the quality of financial statements.