If you have not previously received information from the client, attempt to collect three years and current year to date financial statements or tax returns. In addition you should request a chart of accounts from the client. Address the following issues and questions in your financial investigation: Page 10 of 13 a. Identify the entity structure used by the client and describe the reasons the organization has selected this type of entity structure. b. Identify and detail who in the organization is responsible for accounting and financial matters. How is this process conducted? Does the organization use an accounting software program and is so to what extent? Does the organization use any outside consultants for tax and financial matters and if so how do these outside experts work with personnel within the organization? c. Determine the accounting methods. Does the company use accrual or cash recognition? What is the cycle of reporting and establishing relied upon financial statements (monthly, quarterly or annually)? What internal reports (income statements, balance sheet, statement of cash flow, etc.) including managerial reports does the organization use? How does the organization conduct period end adjustments or post tax return reconciliations? d. Who provides banking and lending services for the organization? What are the types of services provided in terms of depositor and debt elements? e. How does the company conduct forecasting and rank between new project opportunities? Does the company use Net Present Value, Internal Rate of Return, Pay back or some other method in its project selection? How does the company conduct operational and capital budgeting processes? f. What is the capital structure of the firm (debt and equity) and how does this structure impact the firm? g. What recommendations would you make for the financial and accounting practices of the organization?