Walmart’s SEC 10K

Biggs Brett is the name of the auditor. The letter was written in the last quarter of the
2019 financial year. Biggs Brett is from Rogers, Arkansas. One of the issues highlighted by
Biggs Brett is on strategic capital allocation. He suggests that Walmart’s unique assets and
financial strength have been competent to the company in making long-term decisions that will
make the company realize the set goals and objectives. They have the flexibility and capability to
manage the business to the point that they will reach their financial objectives. The operating
cash flow for the year was stable at $27.8 billion (Wal-Mart, 2019). It is from the cash flow that
they were able to pay the stakeholders $13.7 billion through dividends and repurchases
(“Defending the Future of Retail,” 2019). One issue that might have been included in the
management letter to Walmart is leveraging of physical assets through the establishment of
online groceries. The focus of the strategy was on the improvement of the operations of the
eCommerce.
The credibility of the audit report is the other issue that needs to be handled with utmost
seriousness. The issue calls for the need to stamp the various documents used in the audit
process. The main risk presented is a fraud that may take place if the documents are not
authentic. The finance and accounting department will verify all the documents before and after
they are presented to the auditor. In the case of an unidentified fraud, the auditor and the
management will take full responsibility. The audit issue of credibility will primarily increase the
risk of fraud and thus need to be a concern to the management of the organization.

WALMART’S SEC 10K 3

Reference

Defending the Future of Retail. 2019 Annual Report. Letter to Shareholders. Retrieved from
https://www.google.com/url?sa=t&source=web&rct=j&url=https://s2.q4cdn.com/056532
643/files/doc_financials/2019/annual/Walmart-2019-AR-
Final.pdf&ved=2ahUKEwjA5KfI2_nqAhUy8-
AKHZE5AQcQFjAAegQIAxAB&usg=AOvVaw289kHV2gg-
JxEQNF0Ck3Ed&cshid=1596276086846
Wal-Mart (2019). 2018 SEC 10k Report. 2019, Retrieved from
https://www.sec.gov/Archives/edgar/data/104169/000010416918000028/wmtform10-