financial analysis - Essay Example

Only on StudentShare

Extract of sample
financial analysis

In case of any kind of misrepresentation found in the financial statements, they shall be severely liable for not fulfilling their duties and the responsible individual managers are likely to penalize for not being reliable in dealings with the external parties.
The parties such as banks and financial institutions that are interested to provide funds to the firm and other individuals interested to invest in the firm or often require third parties to attest the financial statements served by the firm for reliance in the information provided.
External audit firms, investment bankers and underwriting firms, provide these certification services. Various clients are served by these third parties and thus they are strongly interested in maintaining their reputation and credibility with the financial community.
The report provided by these third parties serves as reasonable assurance in the true and fair disclosure of information in the financial statements. In case of any discrepancy found in the financial information provided by the firm, the reports on the financial statements shall not be clean. Thus adversely affects the credibility of the firm.
In case of any frau ...
Download paper


The firm has contractual and legal obligations with various other bodies, which are also called stakeholders of the firm. The following bodies for their decision-making processes rely upon the financial information provided by the firm.
If the firm is proved to be misrepresenting its financial statements later on, it will lose its confidence in the trust of its stakeholders, on which the whole business of the firm is based and it shall be difficult for the firm to survive for a lengthy period.
Author : fayesporer

Related Essays

Financial analysis
– Financial Statement Analysis 1.1 Strategic Plan overview The Ann Arbor VA focuses on the provision of healthcare services to the veterans of US (Strategic Plan, p.11). The mission statement of Ann Arbor VA is as follows: “To care for him who shall have borne the battle, and for his widow, and his orphan” (Affairs 2013). It is made clear that the organization’s role within its industry is unique.
8 pages (2008 words) Essay
Maximizing Financial Returns for Shareholders Business Analysis
This essay would highlight the fact that it is a business and company's primary responsibility to increase profits and improve shareholder financial returns and wealth maximization to maintain the trust of shareholders and investors in the market although there are many factors and controversies involved as will be discussed.
8 pages (2008 words) Essay
Financial Reporting Essay
At the extreme, some researchers have titled their studies as examining the 'determinants' of economic choices (Hagerman and Zmrjewski, 1979; Lekme and Page, 1992; Aitken and Loftus 1994; Whittred and Zimmer, 1994)"
4 pages (1004 words) Essay
Financial and Management Accounting Essay
(Timmer, John. Accounting for the environment. September 27, 2006. Nobel Intent. Ars technical. [internet]). In a large measure, the environment has become so important a subject that even the art of accounting is now being made part in the quest for attaining worldwide ecological balance. As a matter of fact, disclosure of environmental issues and the duty to report the same is now a corporate task. (Hutchison, Paul D. Environmental Accounting: Issues, Reporting and Disclosure. page 37). This essay will thus be critically evaluating the statement that management accounting and financial...
11 pages (2761 words) Essay
Financial Markets Master Essay
In comparison to their peaks at the end of 2007, the Dow Jones Industrial Average Index and the DAX index have dropped almost 50% in value. Considering recent events many investors have reconsidered the concept of fair value of a stock and the efficiency of techniques used. In addition to this, the approach applied by many academics on Technical and Fundamental Analysis1 and of Efficient Market Hypothesis theory, rather than on how to forecast, has induced us to base the structure of this essay on a similar approach. Therefore in Section 1, 2 and 3 after providing a brief overview of FA and of...
9 pages (2259 words) Essay
Financial Analysis of Nokia
The Working Capital ratios indicate how well the company is able to manage its working capital. "The asset management ratios are also known as working capital ratios or the efficiency ratios. The aim is to measure how effectively the firm is managing its assets." (NetTom, n.d.)The following are some of the working capital ratios which indicate the efficiency of the company in managing its working capital.
6 pages (1506 words) Research Paper
Got a tricky question? Receive an answer from students like you! Try us!