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Pepsico Project

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Progress Report 1: PepsiCo

Company background
PepsiCo is a worldwide known food and beverage company. The ticker symbol for PepsiCo is PEP and stock trades at the New York Stock Exchange. The purpose of the auditor’s report is to provide an opinion assuring that the financial statements are correct and that the company is using them effectively in agreement with the generally accepted accounting principles (GAAP). The auditors provide the opinion by better understanding the internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk (PepsiCo, 2012 Annual Report, p. 102). PepsiCo hired KPMG for the auditing and the auditors came to the conclusion that PepsiCo’s financial statements present the company’s financial position correctly following GAAP. PepsiCo’s most successful and known products/brands are Pepsi-Cola, Mountain Dew, 7 Up, Aquafina, Doritos, Cheetos, Gatorade, and many others. PepsiCo’s main beverage competitor is Coca-Cola Company and the main food competitors are Nestlé S.A., Danone, DPSG, Kellogg Company, General Mills, Inc. and Mondelēz International, Inc. (PepsiCo, 2012 Annual Report, p. 39). The closing price for PepsiCo on Friday, March 1, 2013 was $75.93. Developments relating to the Company
PepsiCo has been a well-established company for several years. Their products are all recognized and have a relatively steady demand. They try to increase their demand by creating new products. Surprisingly, over 50% of their revenue is made from the sale of food. They continue to implement new products and try to reach a larger target market. Also, they have expanded their products globally and their market continues to expand. They now have 22 brands that each make over a billion dollars a year. In

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