Annual Report Questions
 
What to do: 

    1. Place one questionnaire in front of the UAE Annual Report (Tab 1).  Place one questionnaire in front of the SEC Annual Report (Tab 2).
  • Record answer, page number(s), and highlight answer on the appropriate page(s) in the Annual Report.   

 

  1. What is the name of your company? Bank of America
  2. In what industry is this company? Banking Industry
  3. Is this firm listed on the (circle correct one) NYSE?  Yes         ADX?     No          DFM? No
  4. In the beginning of your Annual Report is there a letter addressed to the Shareholders? Yes
  5. If you answer yes to question above, then tell me who (name, title or position) signed the letter and on what date? Briefly, what is discussed in this letter?   If you answer no, then write “not available”.

Sign: Bryan Moyinhan {Chairman and CEO}
Date: March 26th, 2015
The message is on invitation of shareholders to attend the AGM on May 6th, 2015

  1. Does the Annual Report contain a letter or Report from the Independent Auditor?

Yes

  1. If you answer no to the question above, then write “not available”.. If you answer yes to question above, then tell me the following information:
    1. name of the independent accounting firm that wrote the audit opinion,

PricewaterhouseCoopers

  1. the date of the letter,

February 24th 2015

  1. to whom it is addressed,

To the Board of Directors and Shareholders of Bank of America Corporation:

  1. the location of the office responsible for conducting the audit.

Charlotte, North Carolina

  1. Was an Integrated Audit conducted. Briefly discuss the  type of Auditor’s Opinion(s) expressed.

Yes
The auditors provided an unqualified report. In their opinion, the financial statements presented a true and fair position of the bank in all material aspects.

  1. Does this annual report follow S.-based or  International-based generally accepted accounting principles?

The report follows US based accounting method

  1. How many Balance Sheets (or Statement of Financial Positions) are in your annual report?
    1. What is the year ending date of each Balance Sheet?

 

  1. How many years are reported for the Income Statements in your annual report?

Two year (2014 and 2015)

  1. What is the year ending date of each Income Statement?

December 31

  1. What are the amounts of Cash from Operations? (Start with the most recent year first)

2015, $10,455                     2014, $8,995                       2013 $(11,033)      (p.256)
 

  1. What are the following year-end account balances and/or ratios?  (list the most recent years first)

Date: 2015 (31st December           Date: 2014 (31st December)
Cash                                                                      $159,353                                              $138,589
Total Current Assets                                       $159,353                                                              $138,589
Total Current Liabilities                                  $1,651,347                                                           $1,617,924
Current Ratio                                                     0.0964                                                                   0.08566
Total Noncurrent Liabilities                          $236,764                                                              $243,139
Total Assets                                                        $2,144,316                                                           $2,104,534
Total Liabilities                                                   $1,888,111                                           $1,861,063
Total Debt-to-Asset Ratio                             0.8805                                                   0.8843
Total Common Stock                                      $256,205                                              $243,471
Total Retained Earnings                                 –                                                              –
Total Shareholders’ Equity                           $256,205                                              $243,471
Debt-to-Equity Ratio                                      7.37                                                        7.6439
Net Revenues (or Net Sales)                      $82,507                                 $84,247
Net Income                                                        $15,888                                 $4,833
Net Profit Margin                                             0.19257                                 0.05736
Net Worth to Sales Ratio                              0.062                                                     0.01985
Number of Common Shares Outstanding             10,380,265,063  10,516,542,476
 

  1. (a) Who is the President of the Company? (b) Who is the CEO of the Company? (Sometimes the President/CEO are two different people)

President:  Dean C. Athanasia
CEO: Brian Moynihan (p. 253)

  1. Identify and briefly discuss three important issues discussed in the letter.
    1. The no management letter
  2. Does the Management Letter to Investors speak of any challenges or concerns? __________ If so, what?

There is no management letter

  1. What is the topic for footnote disclosure #1?

Bank of America Corporation Regulatory Capital under Basel 3
 

  1. What is the topic of footnote disclosure #11?

Long term Debt to the Consolidated Financial Statements.

  1. Which footnote discuss accumulated depreciation?

Footnote 9. Capital ratios reported under Advanced approaches at December 31, 2015.

  1. What depreciation method does the company use?

The Modified Accelerated Cost Recovery System (MACRS)

  1. What is the number and topic of the last footnote disclosure?

Footnote 9. Capital ratios

  1. Where would you look to determine whether the company has Marketable Securities?

Table 14 Capital Composition under Basel 3 – Transition (p. 55)
 
 
AUDITING PROJECT ASSIGNMENT
 
Name of UAE company: Abu Dhabi Islamic Bank
Name of SEC company: Bank of America
Questions for the Proxy Statement
 
What to do: 

  1. Place one questionnaire in front of the UAE Proxy Statement (Tab 3). Place one questionnaire in front of the SEC Proxy Statement (Tab 4).
  2. Record answer, page number(s), and highlight answer on the appropriate page(s) in the Proxy Statement.
  3. What is the name of your company? Abu Dhabi Islamic Bank (p. 4)
  4. In what industry is this company? Banking industry (p. 12)
  5. Is this firm listed on the (circle correct one) NYSE?  No          ADX?     Yes         DFM? No
  6. In the beginning of your Proxy Statement is there a letter addressed to the Shareholders? Yes (p. 2)
  7. If you answer yes to question above, then tell me who (name, title or position) signed the letter and on what date? Briefly, what is discussed in this letter? If you answer no, then leave write “not available”

Sign: Bryan Moyinhan {Chairman and CEO}
Date: March 26th, 2015
The message is on invitation of shareholders to attend the AGM on May 6th, 2015
 

  1. What are the items of business to be discussed at the Annual Meeting? (write “not available” if not stated)

Invitation to the AGM

  1. Create a Board of Director’s Table that identifies, per board member, the name, age, gender, committee membership(s), the title held for the committee, if any (for example: chair), other board memberships (of other organizations), and director compensation.
Name Gender Committee Membership Title Held Other Board Membership
Jawaan Awaidha Suhail Al Khaili Male Non-Executive Chairman Group Nominations Committee,
Group risk and investment approval committee
 
Khaled Abdulla Neamat Khouri Male Independent Vice Chairman Group Strategy Committee,
Group risk and investment approval committee,
Group remuneration committee
Juma Khamis Mugheer Al Khaili Male Independent Member Group Nominations Committee,
Corporate governance and risk policy committee,
Group risk and investment approval committee,
Group remuneration committee
Khamis Mohamed Buharoon Male Executive Director Member Group Strategy Committee (p. 54),
Audit Committee (p. 54)
Abdulla Bin Aqueeda Al Muhairi Male Independent Member Audit Committee,
Corporate governance and risk policy committee
Ragheed Najeeb Shanti Male Non-Executive Member Group risk and investment approval committee
Sami Ali Al Amri Male Independent Member Group Nominations Committee,
Group strategy committee,
Audit committee,
Corporate governance and risk policy committee,
Group remuneration committee

(Page 54-56)

  1. According to the Proxy Statement, what is the responsibility of the Board of Directors? (May be discussed in the general information section.)

It is responsible for the management and supervision of the Group’s business affairs (p. 50).

  1. According to the Proxy Statement, what is the responsibility of the Audit Committee? (p. 14)

Over see that the banks finances are carried out as per the banking laws requirements

  1. Do the Board members discuss the policies of how executives earn their compensation? On what pages does this discussion occur?

Yes (p. 14)

  1. What page number of the Proxy Statement will I find a table that summarizes the executive compensation?

Page 24

  1. What page number(s) of the Proxy Statement will I find the Report of The Audit Committee of the Board of Directors?

Page 53

  1. Identify (in bullet point form) the basic points discussed in the Report of The Audit Committee.
  • Responsibility of managements in preparation of the report of consolidated financial statements
  • Evaluation of PwC qualification and performance
  • Approval of PwC to on its independence to conduct the audit
  1. Who is the Independent Auditor for the current and prior year?

PricewaterhouseCoopers (p. 53)

  1. Who is the pre-approved Independent Auditor for the upcoming year?

PricewaterhouseCoopers (p. 53)

  1. How much did the company pay in auditor fees for the current and prior years? (Complete the table below.)

 
Page 53

TYPE OF FEES CURRENT YEAR
OF
% OF TOTAL PRIOR YEAR
OF
% OF TOTAL
AUDIT FEES 82.2 81.47% 86.5 83.013%
AUDIT RELATED FEES 8.9 8.82% 7.4 7.1%
TAX FEES 9.7 9.361% 10.2 9.788%
ALL OTHER FEES 0.1 0.001% 0.1 0.001%
TOTAL AUDITOR FEES 100.9 100% 104.2 100%

 

  1. According to the Proxy Statement, how does the Audit Fees differ from the Audit-Related Fees?

Audit fees are the fees charged in relation to the audit process itself. Audit related fees are for audit attest services.  (page 54)

  1. According to the Proxy Statement, what type of services are included in All Other Fees?

Not indicated

  1. Does the Proxy Statement contain a letter or Report from the Independent Auditor?

Yes (p. 63)

  1. If your answer is no to the question above, then write “not available”. If your answer is yes to question above, then tell me the following information:
  2. name of the independent accounting firm that wrote the audit opinion,

Ernst and Young

  1. the date of the letter,

14th February 2016

  1. to whom it is addressed, Abu Dhabi Islamic Bank
  2. the location of the office responsible for conducting the audit.

Abu Dhabi

  1. Was an Integrated Audit conducted. Briefly discuss the type of Auditor’s Opinion(s) expressed.

Yes
The auditors presented an unqualified opinion. They said that they were able to obtain all information and explanations needed for the audit. They also found that the group had maintained proper books of accounts, and the accounting was done according to the UAE legislations.
 

  1. List the various stockholder proposals.

Ordinary shareholders. They receive dividends from the Group.
 

  1. Identify the name(s), title(s) and date of person who signed the last page of the Proxy Statement.

Not signed on last page. Signed on first page instead.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AUDITING PROJECT ASSIGNMENT
 
Name of UAE company: Abu Dhabi Islamic Bank
Name of SEC company: Bank of America
Questions for the Proxy Statement
 
What to do: 

  1. Place one questionnaire in front of the UAE Proxy Statement (Tab 3). Place one questionnaire in front of the SEC Proxy Statement (Tab 4).
  2. Record answer, page number(s), and highlight answer on the appropriate page(s) in the Proxy Statement.
  3. What is the name of your company? Bank of America
  4. In what industry is this company? Banking industry (p. 53)
  5. Is this firm listed on the (circle correct one) NYSE?  Yes         ADX?     No          DFM? No
  6. In the beginning of your Proxy Statement is there a letter addressed to the Shareholders? Yes (p. 2)
  7. If you answer yes to question above, then tell me who (name, title or position) signed the letter and on what date? Briefly, what is discussed in this letter? If you answer no, then leave write “not available”

Signing of Letter: HE Jawaan Awaidha Suhail Al Khaili
Date: Not Indicated
Issues Discussed:  The banking environment and global economy
The bank’s performance in 2015
The bank’s dividends
Awards issued to ADIB
The human resources in the bank
Ethical banking culture at ADIB

  1. What are the items of business to be discussed at the Annual Meeting? (write “not available” if not stated)
  • The Board of Director’s Report on the Bank’s activities and financial statements for the year
  • The Shari’a and Fatwa Supervisory Board Report on the Bank’s activities for the year
  • External Auditor’s report for the year
  • To discuss and approved the audited Balance Sheet and Profit & Loss account for the year
  • To consider the proposal of the Board of Directors to distribute cash dividends
  • To consider the proposal of Board members remuneration for the year ended
  • To discharge the Board of Directors and External Auditors from liability for their work during the year
  • Appointment of External Auditors for the year and determination of their fees
  1. Create a Board of Director’s Table that identifies, per board member, the name, age, gender, committee membership(s), the title held for the committee, if any (for example: chair), other board memberships (of other organizations), and director compensation.
Name Gender Committee Membership Title Held Other Board Membership
Jawaan Awaidha Suhail Al Khaili Male Non-Executive Chairman Group Nominations Committee,
Group risk and investment approval committee
 
Khaled Abdulla Neamat Khouri Male Independent Vice Chairman Group Strategy Committee,
Group risk and investment approval committee,
Group remuneration committee
Juma Khamis Mugheer Al Khaili Male Independent Member Group Nominations Committee,
Corporate governance and risk policy committee,
Group risk and investment approval committee,
Group remuneration committee
Khamis Mohamed Buharoon Male Executive Director Member Group Strategy Committee (p. 54),
Audit Committee (p. 54)
Abdulla Bin Aqueeda Al Muhairi Male Independent Member Audit Committee,
Corporate governance and risk policy committee
Ragheed Najeeb Shanti Male Non-Executive Member Group risk and investment approval committee
Sami Ali Al Amri Male Independent Member Group Nominations Committee,
Group strategy committee,
Audit committee,
Corporate governance and risk policy committee,
Group remuneration committee

(Page 54-56)

  1. According to the Proxy Statement, what is the responsibility of the Board of Directors? (May be discussed in the general information section.)

It is responsible for the management and supervision of the Group’s business affairs (p. 50).

  1. According to the Proxy Statement, what is the responsibility of the Audit Committee?
  • Assist the Board in fulfilling its oversight responsibility relating to the integrity of ADIB’s consolidated financial statements and financial reporting process
  • Review the financial and internal control systems, quality assurance and risk management framework
  • Review the performance of the internal audit function
  • Review the internal controls over financial reporting and annual independent audit of ADIB’s consolidated financial statements;
  • Recommend to the Board the engagement of the external auditors and evaluation of their qualifications, independence and performance
  • Ensure compliance with legal and regulatory requirements (p. 52).
  1. Do the Board members discuss the policies of how executives earn their compensation? On what pages does this discussion occur?

Yes (p. 54)

  1. What page number of the Proxy Statement will I find a table that summarizes the executive compensation?

There is no such a table

  1. What page number(s) of the Proxy Statement will I find the Report of The Audit Committee of the Board of Directors?

There is no such report.

  1. Identify (in bullet point form) the basic points discussed in the Report of The Audit Committee.

There is no audit committee report

  1. Who is the Independent Auditor for the current and prior year?

Ernst and Young (p. 63)

  1. Who is the pre-approved Independent Auditor for the upcoming year?

Ernst and Young (p. 58)

  1. How much did the company pay in auditor fees for the current and prior years? (Complete the table below.)

 
Not indicated in the financial statements
 

TYPE OF FEES CURRENT YEAR
OF
% OF TOTAL PRIOR YEAR
OF
% OF TOTAL
AUDIT FEES        
AUDIT RELATED FEES        
TAX FEES        
ALL OTHER FEES        
TOTAL AUDITOR FEES   100%   100%

 

  1. According to the Proxy Statement, how does the Audit Fees differ from the Audit-Related Fees?

Not indicated

  1. According to the Proxy Statement, what type of services are included in All Other Fees?

Not indicated

  1. Does the Proxy Statement contain a letter or Report from the Independent Auditor?

Yes (p. 63)

  1. If your answer is no to the question above, then write “not available”. If your answer is yes to question above, then tell me the following information:
  2. name of the independent accounting firm that wrote the audit opinion,

Ernst and Young

  1. the date of the letter,

14th February 2016

  1. to whom it is addressed, Abu Dhabi Islamic Bank
  2. the location of the office responsible for conducting the audit.

Abu Dhabi

  1. Was an Integrated Audit conducted. Briefly discuss the type of Auditor’s Opinion(s) expressed.

Yes
The auditors presented an unqualified opinion. They said that they were able to obtain all information and explanations needed for the audit. They also found that the group had maintained proper books of accounts, and the accounting was done according to the UAE legislations.
 

  1. List the various stockholder proposals.

Ordinary shareholders. They receive dividends from the Group.
 

  1. Identify the name(s), title(s) and date of person who signed the last page of the Proxy Statement.

Not signed on last page. Signed on first page instead.