Honors Theses
Date of Award
2026
Document Type
Undergraduate Thesis
Department
Accountancy
First Advisor
Victoria Dickinson
Second Advisor
Mark Wilder
Relational Format
Response
Abstract
This thesis examines how external economic, legal, political, and consumer pressures can affect internal operations, accounting, and audit risk, using PepsiCo, Inc. as a case study. The analysis draws on PepsiCo’s annual reports and Form 10-K, company disclosures, government materials, and business and news sources. Attention is given to the Make America Healthy Again initiative, changing health expectations, food regulation, tariffs, and sustainability concerns. The analysis finds that these pressures could increase research and development, production, inventory, legal, and supply-chain costs while also creating opportunities for PepsiCo to expand healthier products and sustainable practices. These operational changes may also increase audit risk in research and development expenses, inventory, product costs, legal contingencies, and foreign currency translation. The thesis concludes that real-time monitoring, batch processing, and risk-assessment analytics could help PepsiCo and its auditors identify trends, evaluate implementation outcomes, and respond to changing risks. Overall, the case demonstrates that external developments can materially influence internal accounting decisions, operation strategy, financial reporting, and audit planning.
Recommended Citation
Boswell, Maggie E., "External Impacts on Internal Accounting" (2026). Honors Theses. 3614.
https://egrove.olemiss.edu/hon_thesis/3614