Inflation impact analysis, Auditing

Please present an analysis of the attached case. Your analysis should be in the form of a memo not to exceed four pages plus appropriate exhibits.

The memo should present your recommended course of action to take advantage of the opportunities or deal with the challenges presented in the case. It should be an action plan addressed to senior management. A suggested outline for the memo follows:

1. Description of proposed project and the decision situation

2. Key assumptions about volume, price, cost, discount rate, etc.

3. Base (most likely) case cash flow analysis, including determination of NPV. Use the format that converts a pro forma income statement into a cash flow projection.

4. Risk analysis. Case 1 has you do three types of risk analysis:

sensitivity analysis

scenario analysis

inflation impact analysis

In addition, think carefully about the major sources of risk. Discuss these clearly.

5. Non-cash considerations, if relevant (social, political, managerial)

6. Decision recommendation and justification, based on all the numbers you have generated

Posted Date: 3/16/2013 6:02:05 AM | Location : United States







Related Discussions:- Inflation impact analysis, Assignment Help, Ask Question on Inflation impact analysis, Get Answer, Expert's Help, Inflation impact analysis Discussions

Write discussion on Inflation impact analysis
Your posts are moderated
Related Questions
Q. What are the different methods available for collection and analyzing audit data? Q. Describe and explain common audit findings in the fields of: a. Informed consent proce

What techniques used during an audit? Ans)  ? Be professional at all times. Avoid being judgmental. ? Follow safety procedures, clean room procedures, and all other needed pr

Reference to an expert in auditor’s report When issuing an unmodified auditor’s report, the auditor must not refer to the work of the expert. This is because such a reference m

B. The following situations involve a possible violation of the MIA ByLaws (on professional ethics, conduct and practice). For each situation, (1) decide whether or not the Code ha

Checking consolidation papers The auditor pays particular attention to the calculation of: Goodwill arising on acquisition and consolidation Pre-acquisition and post-

techniques of vouching

Mr. Howe, a Junior Partner of the CPA firm Dewey, Cheatem, & Howe (DCH), after noting that there is a proposal to limit Auditor liability is very excited and has announced that th

two advantages of an Audit to the shaire holders

As an auditor, how would you react to the following situation? The company produced photocopies of fixed deposit receipts as the original receipts were kept in the iron safe of the

Auditors Procedures Before Stock Taking 1) Study of the clients stock taking recommendations and instructions for improvements or changes whether the auditor considers them in