Questions:
In assessing the creative / presentation and analysis consideration will be given to overall neatness, completeness and quality of the creative or presentation, timeliness of submission and demonstrated application of the core skills required to undertake effective Analytical Review procedures.
You will acquire a range of excel skills such as writing formulae to perform accounting analytics and summarising your results using pivot tables, graphs and slicers. Those skills will enable you to prepare an accounting analytics dashboard which will enable reviewers to understand your approach, analysis and conclusions.
You will be required to analyse the financial information of ABC Learning over the period 2000-2007 using Analytical Review techniques such as DuPont Analysis, Common Size, Trend Analysis and the Beneish M-Score models (refer Week 4 lecture) to identify:
any potential earnings management
in which accounts and
for which years.
Answer:
Introduction
The intent for the presentation is to highlight the greater emphasis on the significance of rules and regulations in performing the operations of the business of an enterprise (Willoughby, Evans and Nowak 2015).
This presentation has focused and researched on the ABC Learning’s case study.
Literature Review
In this part of the study the different auditing standards have been discussed that have been applied while analyzing the case of the ABC Learning’s. These auditing standards are as follows:
ASA 500
ASA 240
ASA 315
ASA 220
ASA 230
ASA 200
Tools Used
Analysis of the trend
Analysis of Beneish M score
Du Pont Analysis
Analysis of Common Size Statement
Analyses utilizing the tools of finance
Analysis of the Trend
Analysis of the income statement
Balance Sheet Analysis
Analysis of Beneish M Score
Analysis of DuPont
Analysis of Common size statement
Common size income statement
Common size Balance sheet
Summary
The company has more operating expenses than the operating profits.
The business enterprise is not capable to improve its returns on the equity (Khan and Ahmed 2018).
The analysis of the statement of affairs of business enterprise displayed the surplus and reserves of the business is constantly decreasing.
The business has been constantly maintaining a score that is more than -2.22 ever since from the year 2003 (Khan and Ahmed 2018).
Recommendation
This should diminish the operational costs in manner of bringing profitability in the operations of the business.
The business enterprise must not get caught up in the cases like accounts manipulation as this matters might even results in liquidation of the business.
The business enterprise should try hard forward to improve this surplus and reserves straight away. In the process of this, it must be focused on improving the profitability and cash flows of the company.
The business enterprise is receiving fresh funds from this shareholder in conditions of share capital. The business should make most of the funds to increase the operational efficiency to a grand level.
Conclusion
The business is misusing with the shareholders money by various processes like accounts manipulation as this might result in the business being closed.
The business has to be attentive in improving the business profitability because this will ultimately be the main element of the surpluses and reserves of the business.
The recommendation that can be provided to shareholders is to stop all the investments in the business enterprise as this does not have good returns from the business.
References
Willoughby, D., Evans, M.A. and Nowak, S., 2015. Do ABC eBooks boost engagement and learning in preschoolers? An experimental study comparing eBooks with paper ABC and storybook controls. Computers & Education, 82, pp.107-117.
Faber, F.A., Lindmaa, A., Von Lilienfeld, O.A. and Armiento, R., 2016. Machine Learning Energies of 2 Million Elpasolite (A B C 2 D 6) Crystals. Physical review letters, 117(13), p.135502.
Blythe, S.G., 2017. Attention, balance and coordination: The ABC of learning success. John Wiley & Sons.
Khan, M.M. and Ahmed, M.E., 2018. Capstone Project Based Experiential Learning-Case of Institute of Business Management (IoBM).
Chen, R. and Sharma, S.K., 2015. Learning and self-disclosure behavior on social networking sites: the case of Facebook users. European Journal of Information Systems, 24(1), pp.93-106.
Aryal, B., Laurent, C. and Geisler, M., 2015. Learning from each other: ABC transporter regulation by protein phosphorylation in plant and mammalian systems. Biochemical Society Transactions, 43(5), pp.966-974.
Aithal, P.S. and Kumar, P.M., 2016. ABC Model of Research Productivity and Higher Educational Institutional Ranking.
