Financial Ratio Analysis are structured comparisons that can reveal trends, relationships and questions for further investigation. They are not standalone verdicts on performance, value, solvency or management quality. Meaning depends on definitions, accounting policies, business model, period, benchmark and data quality. The analytical problem Profitability, liquidity, efficiency and leverage; trend and peer comparison; accounting-policy effects;…
Audit Evidence and Professional Judgement should be sufficient and appropriate for the assessed risk and purpose of an audit procedure. Professional judgement is not an unsupported preference: it is reasoned, documented and open to challenge. Reasonable assurance is not certainty. The analytical problem Evidence purpose, relevance and reliability; risk response; professional scepticism; documentation. This resource…