ACC2265 Audit Principles and Business Issues Assignment

Reference no: EM133077084 , Length: word count:1300

ACC2265 Audit Principles and Business Issues - Algonquin College

Assignment - Financial Statement Analysis

Learning Requirement 1: Investigate the relationship between management assertions, audit objectives and the basic elements of audit reporting. Identify the various types of audit evidence required to test these assertions.

Learning Requirement 2: Identify and calculate audit risk. Assess the planning tools used by public auditors to fulfil their audit obligations and serve the public need.

Learning Requirement 3: Discuss how a company's control environment and information systems can affect its financial information and could result in the risk of financial statement misstatements.

Objective: The assignment tests your ability to apply the analytical procedures used by the auditor.

Pre-Assignment Instructions:

1. Read the content of Module 9 and 10 to prepare for this Assignment.

Assignment Tasks:
• You are required to conduct a financial statement analysis of a publicly listed company (PLC) from the following list:

• Brick Brewing Company Limited
• Big Rock Brewery
• Jean Coutu Group
• Indigo Books and Music Inc.
• Magna International Inc.
• Maple Leaf Foods Inc.
• Metro Inc.
• Mitel Networks
• Saputo Inc.
• Second Cup Coffee Company
• SNC-Lavalin Group Inc.
• CGI Group Inc.
• WestJet Airlines Ltd.
• Cineplex Inc.
• Cara Operations Limited
• George Weston Limited
• Loblaws Company Limited
• Celestica Inc.
• Leon's Furniture Ltd.
• Jean Coutu Group Inc.
• Roots Ltd.
• Canadian Tire Corporation
• Air Canada
• National Canadian Railways
• High Liner Foods Inc.
• Tim Hortons Inc. (uses the name Restaurant Brands International Limited Partnership - uses US GAAP which I will allow for this assignment)
• Rogers Communications
• Alimentation Couche-Tard Inc.

Part I: Knowledge of the Client's Business and Risk Assessment (no more than 500 words)
• You should provide an overview of the company's business, industry it operates in, its products/service, its geographical presence and the details of the top management of the company.
Part II: Analytical Review and Calculation of Critical Financial Ratios
• You should conduct financial ratio calculation and interpretation for the latest year end numbers. No need to show calculations. Only the final result and its interpretation/analytical insights are required.
• Calculate and provide analytical insights of various ratios under liquidity ratios, profitability ratio, and solvency ratios.
• Perform horizontal common size financial statement analysis using 2019as the base year and provide analytical insights.

Part III: Audit Report and Risks (no more than 800 words)
• Go into the Annual Report and look for management's risk analysis - most companies will assess the future business risks of their company.
• Describe one risk facing the company that is interesting and different from all other types of companies - i.e., it is specific to its business - DO NOT DISCUSS ANYTHING TO DO WITH SOFTWARE TECHNOLOGY AS THIS IS COMMON TO ALL COMPANIES
• Go to the Independent Auditor's Report and identify the auditor of the company and determine if the company receive a clean opinion? How do you know?
• Check for any related party transactions disclosed - you may need to go to the Notes to the F/S unless management has disclosed it in the MD&A (remember Chapter 3 and risk analysis) Select one related party noted and provide details on what was involved in the transaction and who the transactions were with.

Attachment:- Financial Statement Analysis.rar

Reference no: EM133077084

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