Audit

Save Share

This query is : Resolved

CA NEHA SHARMA (Querist)

15 May 2012 Hello everyone....I want to know that in the following cases how can I explain the things & How it can b done in practical life:-
1. Analysis of financial statements including notes to accounts.
2. Examination and analysis of financial assertions, records and statements.
3. Analyzing financial statements and identifying the potential strengths and weaknesses.
4. Ensuring compliance with relevant statutes, accounting principles, standards of auditing, legal pronouncements.
Regards,
CA Neha Sharma

Ki$hor B

Ki$hor B (Expert)

15 May 2012 For 1 & 3: Use analytical procedures.

For ex. In case of a EPC company, compare the Total expenses in their engineering & service division to the departmental revenue. Compare & analyze wrt the industry standards.

For no.4, you ought to understand the statue & then apply your cognitive skills on the info produced by your client.

I'm certain I've not covered all the bases - these kind of Qs cannot be answered on a forum.

CA Deepak Bora

CA Deepak Bora (Expert)

16 May 2020 Hi Neha, you will find this video useful in analysing the financial statements
https://youtu.be/0mPZfZANrkk

Further your queries will be answered when you will go through the entire text of Analytical Procedures at
www.deepakbora.com

If you have any other questions please feel free to contact me via queries

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now