Dell

DELL

To Dr. Munir lutfi,

The following is our memo for evaluation of Dell’s performance and assessment of the risk of misstatement.

Made by :

Nandini Verma - 3711262

Vrinda Thakwani -

Question 1

Form 10k is an annual report that has to be submitted with Securities and Exchange Commission yearly. It contains more details than just the annual financial reports of the company. It might typically include information on company’s history, organisational structure, equity, holdings, earning per share, subsidiaries, etc. SEC Form 10 k provided by Dell includes introduction on the business, its risk factors, legal proceedings, qualitative and quantitative disclosures about market risk, Financial Statements, changes in and disagreements with accountants on accounting and financial disclosure. It also includes information regarding the Directors, Executive Officers and Corporate governance, relationship and related transactions and Director Independence, Principal accounting fees and services and various exhibits.

Question 2

a) Dell’s

* Sales- Dell’s Sec form 10k for the financial year 2012 shows the net revenue for various years showing an increase in the net revenue from January 2010 to the last financial statement published in February 2012. On February 3, 2012 Dell reported net revenue of $ 62, 071 million.

* Net Income- Dell’s Net Income also shows an increase from January 2010 to February 2012 as shown in the Sec form 10k. As per the financial year 2012 the net income reported on February 3, 2012 was $ 3,492 million.

* Cash Flow from Operating Activities- Dell’s consolidated statement of Cash Flows shows inflow of cash from Operating Activities in various years. Cash Inflow from Operating Activity on February 3, 2012 was $ 5, 527 million.

* Total Assets- Assets of Dell includes both current assets like cash and cash equivalents, inventories, accounts receivable, short terms investments and Non- current assets like...