We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

AuditingSelect a company quoted on the UK stock exchange. Obtain, or download a copy of, the company's last annual report c - Case Study Example

Comments (0) Cite this document
Name: Institution: Professor: Date: Auditing- Stage Coach Group Stage Couch Group is an international transport company which operates trains, buses, trams, ferries and express coaches. The company was founded in 1980 in Perth; Scotland. Stage Coach Group provides smarter, greener and better value transport to over 3 million customers across the United Kingdom and North America…
Download paper
AuditingSelect a company quoted on the UK stock exchange. Obtain, or download a copy of, the companys last annual report c
Read TextPreview

Extract of sample
AuditingSelect a company quoted on the UK stock exchange. Obtain, or download a copy of, the company's last annual report c

This report will touch on the key areas of audit risk that have heightened in the audit report for the year ending 30th April 2012. The main sources of information will be the annual report, respective audit procedures and any other relevant sources. Areas of increased risk a) Revenue Stage Couch Group’s revenues are generated from the three main divisions (continuing operations) which include Rail, UK Bus and North America as a number of joint ventures. Revenue is a key area of concern as it is used in assessing the group’s overall growth and performance (Stage Couch Group Annual report 2012). As pointed out in the company’s annual report for the year ending 30th April 2012, the overall performance was as a result of increased sales in all the three divisions. The revenue increased by 7.76 per cent in 2012 from the 2011 financial team. There are times when the management of a company may misstate the revenue with the aim of impressing investors, the top level managers or the board of directors. The group recognizes revenue share amounts payable or receivable in its income statement at the same period in which related revenue is recognized. The revenue obtained from maintenance income and advertising incomes is treated as miscellaneous revenue by the company. The management of the company says that the company had performed well. However, the low percentage increase in revenue from 2011 to 2012 may be an issue of concern. A 7.76 % increase in the total revenue may be an indication of misappropriation and misstatements. This is a reason why the increase in revenue is an area of increased risk. Investor’s motive is to invest in a company that performs well and indicates growth. They get information of a company through the financial statements so as to make investment decisions (Stage Couch Group Annual report 2012). Therefore, if the revenue for instant does not indicate any growth, they will not invest in that particular company. Other times human error might occur when recording revenues or revenue may be recorded at the wrong time. This is another reason of concern on revenues. The audit procedure here is for the auditor to have an understanding of the company and the industry in which the entity operates so as to have a better assessment of the auditing procedures outcome. Audit procedures would also include vouching and verification procedures and analytical review of the financial statements. b) Cash When the company has enough cash, it means that its liquidity position is secure. Cash balances and receipts usually affect the profits of a business. Stage Couch Group cash balances decreased to ? 241 in 2012 from ? 358.3 thus this is a key area of concern that calls for scrutiny of internal controls to detect any error or fraud (Stage Couch Group Annual report 2012). The auditor uses analytical procedures as the audit procedure in detecting any fraud. He compares the cash balances with the projected cash and if the balances exceed or fall below the years expectations, tests of detail are performed. Cash is an area of concern because the management might overstate it to cover up on its liquidity position. c) Accrued receivables According to the 2012 financial statement, accrued receivables decreased to ?16.4 million in 2012 from ? 19.4 ... Read More
Cite this document
  • APA
  • MLA
(“AuditingSelect a company quoted on the UK stock exchange. Obtain, or Case Study”, n.d.)
Retrieved from https://studentshare.net/finance-accounting/86501-auditingselect-a-company-quoted-on-the-uk-stock
(AuditingSelect a Company Quoted on the UK Stock Exchange. Obtain, or Case Study)
“AuditingSelect a Company Quoted on the UK Stock Exchange. Obtain, or Case Study”, n.d. https://studentshare.net/finance-accounting/86501-auditingselect-a-company-quoted-on-the-uk-stock.
  • Cited: 0 times
Comments (0)
Click to create a comment
Financial Report of the Fashion Company Hermes
This paper is Hermes' financial report. Hermes history: artisans competed to produce the bulk stylish objects, facts was collective flanked by a variety of areas of know-how, a fiesta showcased our skill in numerous countries, and the Hearts and crafts film obtainable the sole profiles of our craftsmen. All of these event s completely illustrated.
11 Pages(2750 words)Case Study
British Airway is a listed industrial company on the London Stock Exchange,obtain its published annual reports and aacounts
The report also presents prediction of the financial position and performance of British Airways plc for the year 2006. It provides estimation of fundamental value of equity price per share at the end of fourth year i.e. 2005 with the help of Earnings Price Ratio model.
10 Pages(2500 words)Essay
Download Movies vs Renting Movie
These downloads come in two forms, legal and illegal. Legal downloads allow for the person to avoid the line-ups at the video store and to choose what to watch from the comfort of his or her own home. This, however, has disadvantages, as a significant amount of time must be factored in so that the movie has enough time to download.
7 Pages(1750 words)Case Study
Business Analysis of a Company's Failure
This is further emphasized by Bullinger, president of the Fraunhofer-Gesellschaft1 by stating that employees are a company's best assets together with their knowledge, abilities, creativity and commitment. He further asserted that the competitiveness of a business organisation is highly correlated with the company's highly trained, creative, and motivated employees.
4 Pages(1000 words)Case Study
Next Plc of UK
The report was able to address the major issues of product improvement, diversification and market penetration of Next Plc. This report is a detailed examination of Next Plc of UK, which is one of the leading apparel companies in UK. The report is mainly focusing on the competitive advantage of the firm as per Kanter's new wisdom and D and W model.
14 Pages(3500 words)Case Study
Case Company Report-Sony Inc
The company needs to constantly update its technology to remain in pace. Its product lines can be challenged by economic downturn and currency fluctuations. The company has always adapted measures to satisfy the interests of
5 Pages(1250 words)Case Study
Investment report for Apple company
The key to have success is doing proper research of a company and its financial results. The annual statement contains lots of information about the performance of the company including its financial statements. This report will analyze the financial performance of
5 Pages(1250 words)Case Study
Devise a strategy so that the NY Cheese Company can protect itself against foreign exchange risk
However, a good strategy must include a number of things for it to be effective. Firstly, is the identification of the certain risks that have an impact on the financials. Secondly, is the measurement and collection of the foreign exchange risks data that will aid in the
2 Pages(500 words)Case Study
Toll Company Annual Report
The case study assignment is to be completed individually but also has an element of group work. For Parts 1-3 you must answer the questions assigned for the week (according to the Subjec t Calendar on page 15 of the Subject Guide). During the
3 Pages(750 words)Case Study
Country report on the monetary policy of a central bank in the UK
Researcher contrasted the UK financial scenario during the post 2008 recessional period. Moreover, different factors like the redundancy, credit market fluctuations and inflation of cost. On the contrary, currency exchange rates will be imposed on the trading operations. In the study, researcher has emphasised on the collective demand of the currency exchange rate in the UK.
5 Pages(1250 words)Case Study
Let us find you another Case Study on topic AuditingSelect a company quoted on the UK stock exchange. Obtain, or download a copy of, the company's last annual report c for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us