Question

Page 2 of 2 - ZOOM Open (or download) Microsoft's 10-K report for the year ending June 30, 2019. (To find the report, search the internet for "Microsoft Investor Relations". On the search results page, click "SEC Filings". Filter by selecting "Annual Filings" in the "Group" field. Select the most recent 10-K report.) Find the audit report in the financial statement section of the 10 K. (HINT: Microsoft adds the audit report at the end of the financial statement section.) 3. What is the name of the firm that audited Microsoft? a. Deloitte & Touche b. Ernst & Young C. PricewaterhouseCoopers d. KPMG 4. When did the firm start auditing Microsoft? (Enter the year.) When did the auditors complete their field work? Enter the month and day only. The month should be spelled out. For example 11/15/19 would be entered as November 15. How many Critical Audit Matters (CAMs) were included in the report? 7. Sampling was involved in one of the audit procedures described in a "How the Critical Audit Matter Was Addressed in the Audit" sections. What was the sample population? a. Sales invoices b. Performance obligation C. Customer agreements d. Transfer price list

Answer 1

The accounting firm that audited Microsoft was  DELOITTE & TOUCHE LLP.

The critical audit matters included in the audit report are as follows

- The Company recognizes revenue upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. The Company offers customers the ability to acquire multiple licenses of software products and services, including cloud-based services, in its customer agreements through its volume licensing programs.

And the above critical audit matter was addressed by auditors by applying sampling method on customer agreements.