Prepare a horizontal and vertical analysis on balance sheet

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Reference no: EM13954816

Audit Planning using Analytical Prodedures

Using the current financial statements of Walt Disney, WalMart and Caterpiller (see files on Canvas) perform the following analytical procedures to plan your audit of these companies.

Horizontal & Vertical Analysis

Prepare a horizontal & vertical analysis on the balance sheets and income statements for the companies for the last 2 years. Identify trends and other things of interest.

Ratio Analysis

Calculate and discuss the following financial statement ratios for the last 2 years

Current Ratio	Quick Ratio
A/R Turnover	Days Sales in Receivables
Invtl Turnover	Days Cost of Sales in Inventory
Debt/Equity	Times Interest Earned
Asset Turnover	Net Income/Sales

Based on the outcomes of these procedures identify the critical audit areas and challenges that you expect to face on these audits.

Reference no: EM13954816

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