Question: We should extract data from evolution mining SECTION 2 Section 2 - Part A The partner has requested you to prepare a preliminary analytical review

We should extract data from evolution mining

We should extract data from evolution mining SECTION 2 Section 2 -

SECTION 2 Section 2 - Part A The partner has requested you to prepare a preliminary analytical review on the information provided by your company. The partner suggests that, as a minimum, you address key balance sheet and profit and loss horizontal analysis, vertical analysis and ratios over the period 2018 to 2021 Based on these results and the nature of your company's business and its markets, outline the apparent trends and changes in these ratios, the key risk areas for the audit and the matters that will have to be addressed in the audit plan. Give examples of relevant assertions and at least one audit procedure for each assertion. Some Guidance to help answer Section 2 Do your own calculations and show all workings, do not just use ratios that may be provided in the financial reports This question is not just about calculations of comparative horizontal and vertical analyses, and ratios. Interpretation is required. What are the trends? Are these positive or negative from a financial management perspective? Are any movements consistent with the over-statement of profit and assets or the under-statement of expense and liabilities ? Summarise the main risks. What audit objectives fe. g. occurrence/existence) are relevant? What audit procedures are useful? Refer to Lecture 7

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