Preparing an Annual Financial Statement Audit

Using the 2020 Zimmer Biomet Holdings’ Annual Report, answer the following questions related to Zimmer Biomet Holdings.

Access Zimmer Biomet Holding Inc’s 2020 Annual Report at www.zimmerbiomet.com

On the bottom blue banner — click on Investors

On the top — click on Financial Information

Pull down on Annual Reports

click on 2020 Annual Report

The Securities and Exchange Commission (SEC) requires an annual financial statement audit for all companies, whose stock is publicly traded (i.e., traded on a stock exchange). The purpose of the audit report is to communicate the findings of the auditor to financial statement users.

Who is Zimmer Biomet Holdings’ 2020 auditor?

Does the auditor believe that Zimmer Biomet Holdings maintained effective internal control over financial reporting? Write the sentence from the report that supports your answer. (hint: read the report signed by the auditor).

Does the auditor believe that the financial statements of Zimmer Biomet Holdings were presented fairly? Write the sentence from the report that supports your answer. (hint: read the report signed by the auditor).

Briefly describe the responsibility by management with respect to internal controls, which is referred to by the auditors in the report. Write the phrase from the report that supports your answer.

What method of depreciation is used by the company to depreciate its property, plant, and equipment?

What is the largest source of cash (cash inflow) from investing activities in fiscal year 2020? (hint: one item, which is listed on the Statement of Cash Flows)

Describe one footnote (i.e., notes to the financial statements) that presents additional details about a recorded dollar amount in the current fiscal year’s financial statements (include the note number and page number on the document, not the pdf file page number).