Starbucks' XBRL Audit Report: Financial Statement Irregularities

This report presents an XBRL audit conducted on Starbucks' financial statements, specifically focusing on the company's SEC filings. The audit addresses irregularities detected by the SEC's Accounting Quality Model, often referred to as RoboCop. The task involves researching these irregularities within Starbucks' 10-K filings, auditing the financial statements, and proposing corrections to ensure compliance with SEC regulations. The report includes an analysis of Starbucks' consolidated statements of earnings from 2016 to 2018, highlighting specific areas of concern such as amortization expenses and non-controlling interests. The proposed remedies are intended to bring Starbucks back into good standing with the SEC, and the report concludes with references to relevant academic literature on XBRL tagging and financial statement auditing.

XBRL Audit

Table of Contents
Introduction.........................................................................................................................................3
Finacial Statement of past three years...............................................................................................3
Conclusion............................................................................................................................................5
References............................................................................................................................................6

Introduction
Scholastics in back and accounting have since quite a while ago concentrated the data
contained in fiscal summaries to all the more likely comprehend the optional accounting
decisions that are made while exhibiting money related data to investors. XBRL labels are
utilized to recognize money related information incorporated into run of the mill long-shape
budget summaries and related note exposures. On account of the SEC's AQM, these XBRL
labels give the establishment to a recharged, cutting edge accentuation on the identification of
extortion and other accounting anomalies. Modernized investigation of this labelled data
essentially enhances the effectiveness and speed of the examinations of recorded information.
Finacial Statement of past three years
The below table gives the financial statement of the past three years.
CONSOLIDATED STATEMENTS OF EARNINGS
Sep 30, Oct 1, Oct 2,
2018 2017 2016
Net revenues:
Company-operated
stores $ 19,690.3
0 $ 17,650.
70 $ 16,844.
10
Licensed stores 2,652.20 2,355.00 2,154.20
Other 2,377.00 2,381.10 2,317.60
Total net revenues 24,719.50 22,386.80 21,315.90
Cost of sales including
occupancy costs 10,174.50 9,034.30 8,509.00
Other operating
expenses
539.3 500.3 499.2
Depreciation and
amortization expenses 1,247.00 1,011.40 980.8
General and
administrative expenses 1,759.00 1,450.70 1,408.90

Restructuring and
impairments 224.4 153.5 —
Total operating
expenses 21,137.40 18,643.50 17,462.20
Income from equity
investees 301.2 391.4 318.2
Operating income 3,883.30 4,134.70 4,171.90
Gain resulting from
acquisition of joint
venture
1,376.40 — —
Net gain resulting from
divestiture of certain
operations
499.2 93.5 5.4
Interest income and
other, net 191.4 181.8 102.6
Interest expense (170.3 ) (92.5 ) (81.3
Earnings before income
taxes 5,780.00 4,317.50 4,198.60
Income tax expense 1,262.00 1,432.60 1,379.70
Net earnings
including noncontrolling
interests
4,518.00 2,884.90 2,818.90
Net earnings/(loss)
attributable to
noncontrolling interests
(0.3 ) 0.2 1.2
Net earnings
attributable to Starbucks $ 4,518.30 $ 2,884.7
0 $ 2,817.7
0
Earnings per share —
basic $ 3.27 $ 1.99 $ 1.91
Earnings per share —
diluted $ 3.24 $ 1.97 $ 1.9
Weighted average
shares outstanding:
Basic 1,382.70 1,449.50 1,471.60
Diluted 1,394.60 1,461.50 1,486.70
From the above table the following irregularities are detected by SEC’s Accounting Quality
model:
Amortization expenses: Ii is the expense which is tangible over a period of time. This
expense reflects the consumption of the asset, which becomes the irregularity in the financial

statement (Prentice, Bills & Peters, 2018). This expense can be modified as fixed assets and
entered in the financial statements.
Non-controlling interests:
A non-controlling interest, additionally called NCI or minority intrigue, is a proprietorship
position where a corporate investor possesses under 50 percent of exceptional offers and can
just impact the executive’s choices as opposed to controlling them (Elam, Wenger &
Williams, 2012). Only the monthly interest can be included in the financial statement.
Conclusion
The Accounting Quality Model which has been discussing today speaks to an extra way to
deal with evaluating optional accumulations and distinguishing anomalies. Thus it can, aid
the push to recognize profit to the board. It is not necessarily the case that have manufactured
a model that can "distinguish extortion." Far from it. Or it may be, planned to give one more
apparatus that the officially complex staff of the SEC can use in its endeavours to guarantee
high calibre budget reports.

References
Elam, R., Wenger, M., & Williams, K. (2012). XBRL Tagging of Financial
Statement Data Using XMLSpy:The Small Company Case. Issues In
Accounting Education, 27(3), 761-781. doi: 10.2308/iace-50162
Prentice, J., Bills, K., & Peters, G. (2018). The Impact of Benefit Plan Audits on
Financial Statement Auditor Choice and Financial Statement Audit
Quality. SSRN Electronic Journal. doi: 10.2139/ssrn.3204039