The two primary threats to independence of SKM are –
The above issues can be safeguarded by the following method:
As a part of the analytical procedure, ratio analysis has been performed for Easy Fit Pty Limited and the same has been compared with the industry averages as well.
Current ratio shows the ability of the company to pay off the short-term obligations with current assets – it is a measure of liquidity of the firm and the same has declined from 2.34 times in 20X6 to 1.89 times in 20X7. The industry average is 3.27 times in 20X6 and 2.84 times in 20X7 respectively which clearly shows that Easy fit is having comparatively lower current assets when compared with peers.
The receivables turnover ratio shows how many times the receivables are being churned or collected during the year. More the RTR, better it is for the company from working capital perspective. The same has declined from 7 times to 6.3 times (Industry: 4.9 times), which shows that the collection days have increased.
The inventory turnover ratio shows how many times the inventory is being rotated to COGS every year and this again has decreased from 5.5 times to 5 times in 20X7 (Industry: 3.7 times). Though it is better than the industry but the decrease shows that the company is facing issues in converting COGS to sales.
The return on total assets shows the profits made by employing all the assets of business and it has increased from 11% to 13% (industry 7%). This shows that the business is making good profits and employing assets efficiently and effectively.
The net profit ratio shows the net profit earned on sales and it has remained constant at 4% as against the industry average of 6%, which clearly shows that the costs have increased, and sales might have decreased during the period.
Some potential audit risks which need to be investigated further include vouching the sales and COGS account as both have had substantial changes – impacting turnover ratios. Secondly the working capital components also need to be checked as to what is the reason of decline. Lastly, few of the cost and expenses accounts where there are substantial increased needs to be audited.
The overall weakness in the internal control of the purchases and payments function of the company are-
References
Boghossian, P., 2017. The Socratic method, defeasibility, and doxastic responsibility. Educational Philosophy and Theory, 50(3), pp. 244-253.
Iggers, J., 2018. Good News, Bad News: Journalism Ethics And The Public Interest. s.l.:s.n.
Johan, S., 2018. The Relationship Between Economic Value Added, Market Value Added And Return On Cost Of Capital In Measuring Corporate Performance. Jurnal Manajemen Bisnis dan Kewirausahaan, 3(1), pp. 121-134.
Norberg, P., 2018. Bankers Bashing Back: Amoral CSR Justifications. Journal of Business Ethics, 147(2), pp. 401-418.
Ruth, W., 2018. ‘Worrying’: Companies’ reporting of climate risks goes ‘backwards’. The Sydney Morning hearld, 20 September, pp. 123-128.
Wellmer, A., 2018. The Persistence of Modernity: Aesthetics, Ethics and Postmodernism. fourth ed. UK: Polity Press.
Wendt, K., 2018. Positive Impact Investing: A Sustainable Bridge between Strategy, Innovation, Change and Learning. first ed. Switzerland: Springer.
We provide professional writing services to help you score straight A’s by submitting custom written assignments that mirror your guidelines.
Get result-oriented writing and never worry about grades anymore. We follow the highest quality standards to make sure that you get perfect assignments.
Our writers have experience in dealing with papers of every educational level. You can surely rely on the expertise of our qualified professionals.
Your deadline is our threshold for success and we take it very seriously. We make sure you receive your papers before your predefined time.
Someone from our customer support team is always here to respond to your questions. So, hit us up if you have got any ambiguity or concern.
Sit back and relax while we help you out with writing your papers. We have an ultimate policy for keeping your personal and order-related details a secret.
We assure you that your document will be thoroughly checked for plagiarism and grammatical errors as we use highly authentic and licit sources.
Still reluctant about placing an order? Our 100% Moneyback Guarantee backs you up on rare occasions where you aren’t satisfied with the writing.
You don’t have to wait for an update for hours; you can track the progress of your order any time you want. We share the status after each step.
Although you can leverage our expertise for any writing task, we have a knack for creating flawless papers for the following document types.
Although you can leverage our expertise for any writing task, we have a knack for creating flawless papers for the following document types.
From brainstorming your paper's outline to perfecting its grammar, we perform every step carefully to make your paper worthy of A grade.
Hire your preferred writer anytime. Simply specify if you want your preferred expert to write your paper and we’ll make that happen.
Get an elaborate and authentic grammar check report with your work to have the grammar goodness sealed in your document.
You can purchase this feature if you want our writers to sum up your paper in the form of a concise and well-articulated summary.
You don’t have to worry about plagiarism anymore. Get a plagiarism report to certify the uniqueness of your work.
Join us for the best experience while seeking writing assistance in your college life. A good grade is all you need to boost up your academic excellence and we are all about it.
We create perfect papers according to the guidelines.
We seamlessly edit out errors from your papers.
We thoroughly read your final draft to identify errors.
Work with ultimate peace of mind because we ensure that your academic work is our responsibility and your grades are a top concern for us!
Dedication. Quality. Commitment. Punctuality
Here is what we have achieved so far. These numbers are evidence that we go the extra mile to make your college journey successful.
We have the most intuitive and minimalistic process so that you can easily place an order. Just follow a few steps to unlock success.
We understand your guidelines first before delivering any writing service. You can discuss your writing needs and we will have them evaluated by our dedicated team.
We write your papers in a standardized way. We complete your work in such a way that it turns out to be a perfect description of your guidelines.
We promise you excellent grades and academic excellence that you always longed for. Our writers stay in touch with you via email.