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DPA 50153 : AUDIT 2 MINI PROJECT

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 Group 6 1. Muhammad Rusyaidi Bin Rosli  (10DAT22F1019) 2.Muhammad Afiq Hafizuddin Bin Sabri (10DAT22F1025) A) B) C) Verify the potential impact of these variations on the company's business risk, going concern status and any relevant issue.   a) Liquidity Ratios: A decline in liquidity ratios can indicate potential cash flow problems, increasing business risk and raising questions about the company’s ability to meet short-term obligations.   b) Profitability Ratios:Decreased profitability ratios in net profit(96.70%-36.48%) may signal operational challenges, suggesting that the company could struggle to maintain its operations in the long term, which could threaten its going concern status.   c) Trend Analysis: It's essential to compare these ratios with industry benchmarks and historical performance to assess whether the changes are part of a broader trend or isolated incidents.   d)Management Commentary: Consider management’s insights regarding the financial change
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I.     Going Concern Status -Considerable negative fluctuations, particularly in cash flow or profitability, may give rise to doubts regarding the company's capacity to carry on with business operations. -The company's capacity to fulfill its financial commitments could be endangered by recurring downturns or financial difficulties. -Variations that impact crucial metrics such as debt levels or liquidity ratios can have an effect on the evaluation of the company's ability to continue as a going concern. -To ascertain the implications of variations for the company's continuity, it is  imperative to evaluate the underlying causes, which may include market conditions, competitive pressures, or internal challenges.     I.     Relevant Issues : -Variations could draw attention to hidden problems like production hold-ups, supply chain interruptions, cost overruns, or problems with regulatory compliance.   -Negative fluctuations in key performance indicators (KPIs) have the po