sheet. Mr. Ijaz relied on the accuracy of the audited financial statements and invested Rs. 20 million without knowing the facts that the company was in very bad state and financial position had been misstated. Mr. Atif used all the investment for his personal affairs and then declared bankruptcy. Eventually, Mr. Ijaz lost his entire invested money. 3. An auditor circulated its opinion in the press, before the final signature on financial statements, that the stock/inventory was manipulated
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Sarbanes-Oxley Act imposed a series of “enhanced” standards on publicly traded companies intended to ensure financial reports were being reported accurately to the public. Among others, these enhanced standards include: • Companies must maintain adequate controls over financial reporting. • Companies must provide a statement regarding the method the company uses for evaluating their control over financial reporting controls. • Companies must disclose any material weaknesses in their accounting
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Return on year - end capital employed Comparing the ratios of return on year end capital employed that have been calculated for Venice ltd for 30th september 2010 which is 7.1% and for 30th september 2011 which is 11.21%, it has an increase of 4.11%. This increase in the percentage indicates the efficiency and profitability of Venice ltd capital investment have increase. From the Chief Executive's report of Venice's performance for year ended 30th september 2011, gross profit margin up from
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in operating capital Return of Invested Capital (ROIC) = NOPAT / Total Net Operating Capital Economic Value Added (EVA) = NOPAT- WACC * Total Net Operating Capital Market Value Added (MVA) = Market Value of stock - Book Value of Common Equity Financial Ratios Current Ratio = Current Asset / Current Liabilities Quick Ratio = (Current Asset – Inventory) / Current Liabilities Inventory Turnover Ratio = Sales / Inventory Days Sales Outstanding (DSO) = (Account Receivable/ Sales) x 365 Fixed Asset
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missing inventory, writeoffs of restructuring costs and goodwill writedowns does not suggest the securities market inefficiency. First we discuss how we define the securities market efficiency. According to the efficient-market hypothesis (EMH), the financial markets are “informationally efficient”. That is, no one can consistently achieve returns in excess of average market returns by using any information that market already knows. That means when the investment is made, the information is publicly
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University of Phoenix Apple Computer Financial Report On November 5, 2008 Apple Computer filed the company’s 10-K report with the Securities and Exchange Commission (SEC). Although the company is required to file yearly reports with the SEC financial managers and investors use this information to help make sound financial judgments when deciding to invest in Apple Computer. In the report financial ratios, including liquidity, asset management, financial leverage, profitability, and market-based
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ABB India Ltd Performance Highlights (Rs in Crores) CY11 CY10 %change Revenue 7,721.23 6,638.16 16.32 Gross Profit 393.67 186.87 110.67 PAT 184.54 63.23 191.86 ABB India has bounced back with promising numbers with net profit jumping to about 191%. The Gross Profit has increased and this has been mainly due to the improvement in power system business. Performance RATING: SELL The Net sales of ABB has increased to about 10% and it has registered a EBITDA Margin of 5.6% in this quarter
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In 2007, the US financial system began to collapse. The trust link between the different financial institutions, such as Investment Banks or Insurance Companies, broke – crashing all the financial system. The collapse of all the US banking system had consequences everywhere in the world. No one, from the strongest European countries to the poorest places in the world, was spared. To understand the whole current situation, we have to look back in the 80s and 90s when the deregulation started. Deregulation
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AUDITING 300 Semester 2 2012 - ASSIGNMENT 2 (Due Date: 1/10/ 2012) Please answer all four questions Question 1: The external auditor can rely on the work of the internal auditor subject to certain conditions being met. One of this relates to the internal auditor reporting to the audit committee rather than to management. Required: (i) Please explain as to why this is an important condition to be met (2 Marks) (ii) Provide three benefits of the audit committee in enhancing governance (6 Marks)
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Financial Analysis: 1. Operating Profit Margin Ratio: The operating profit margin ratio indicates how much profit a company makes after paying for variable costs of production such as wages, raw materials, etc. It is expressed as a percentage of sales and shows the efficiency of a company controlling the costs and expenses associated with business operations. Year | Operating Profit Margin Ratio (%) | Mar '12 | 12.22 | Mar '11 | 13.03 | Mar '10 | 12.18 | Mar '09 | 12.02 | Mar '08
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