Answer to Question #65167 in Finance for jackson

Question

12. Explain the documentation required to satisfy ‘standard auditing’ processes of a small to medium business. In your outline include the necessary infrastructure or information requirements to be able to complete this auditing process. (5 Marks)

13. Write a report to indicate the importance of maintaining a ‘real-time’ analysis of a business’s financial position. In your report include the required information to gain this ‘real-time’ picture and the types of common errors that occur in gaining a ‘real-time’ picture of the business’s financial position. (5 Marks)

14. As a manager of a department or business you will be required to produce a number of reports to outline the financial status and operations to the business owner(s). List and describe the types of reports a manager can use to provide this financial information.

Answer 1

12. Such documentation as income statement, cash flow statement and balance sheet are required to satisfy ‘standard auditing’ processes of a small to medium business.
13. Maintaining a ‘real-time’ analysis of a business’s financial position is very important for every firm, because it allows to monitor the current financial position and main ratios.
14. A manager of a department or business can use such reports as income statement, cash flow statement and balance sheet to provide financial information to the owner.