Assignment First

英国健康学论文代写:收入增长和净利润比率

收入增长:由于奖金是按目标收入支付给管理层的,因此销售收入平衡存在被误报的内在风险。出现了相关的断言,即确保销售收入是真实的,并检查债务人的账户余额(Whitehouse, 2011)。在收入增长出现问题的情况下,应考虑在审计期间发生的断言。由于Soundworld在零售业务上不太健全,因此管理层会错误地陈述或挪用财务报表。因此,所有与零售业务相关的交易均应实际发生,且仅适用于Soundworld。另一个应考虑的主张是分类,审计人员应在分类中核实两项不同业务的交易记录是否正确。管理层可以指导会计将部分批发业务转移到零售业务中,使零售业务在财务上更加稳健和体面。

英国健康学论文代写:收入增长和净利润比率

净利润比率:该比率指的是在报告期内取得的净利润与商业机构的销售收入之比。投资者在进行有关投资的决策时,依赖于净利润率。这一比例表明该组织的盈利能力,在这种情况下,Soundworld的净利润存在严重问题。他们的毛利率很高,但净利很低。这可能是费用高估的情况。可能的断言可以是费用帐户和其他收入帐户。

英国健康学论文代写:收入增长和净利润比率

Revenue Growth: Sales Revenue balance has high level of inherent risk of being misstated because bonuses are paid to management on target revenues. Relevant assertions are occurrence i.e. to ensure sales revenue is real and account balances of debtors shall be checked (Whitehouse, 2011). In this case of issues in revenue growth, during audit occurrence assertion shall be taken into account. Since Soundworld is not so sound in retail business that makes management to misstate or misappropriate financial statements. Therefore all transaction related to retail business shall actually occurred and pertaining to Soundworld only. Another assertion that shall be taken into account is of classification in which auditors shall verify recording of transaction of two different businesses are correct. It is possible that management can instruct accountant to move some transaction of wholesale business to retail business, in order to make retail business more financially strong and presentable.

英国健康学论文代写:收入增长和净利润比率

Net profit ratio: This ratio indicates net profit earned as compared to sales revenue of the business organisation during the reporting period. Investors rely on net profit ratio while making decisions related to investment. This ratio suggests profit earning capacity of the organisation and in this case Soundworld is having serious issue with net profit margin. Their gross profit margin is at higher end but their net profit margin is too low. This could be case of overstatement of expenses. Possible assertions can be expenses account and other income account.