Suppose a company's GP% is 10% this year and suddenly rises to 50% the next year.
Audit is to find out and analyze the reasons.
Financial analysis is the study of financial statements and off-balance-sheet reality: internal financial statement analysis/external financial statement analysis: the former is to analyze the company's operation and provide decision-making for management; The latter is also to analyze the company's operating conditions and provide reference suggestions for investors.
Knowledge expansion: audit: first of all, audit is an economic supervision activity, and economic supervision is the basic function of audit; Secondly, audit has independence, which is the most essential feature of audit supervision and the key to distinguish it from other economic supervision.
Compared with economic management activities, non-economic supervision activities and other professional economic supervision activities, audit mainly has the following basic characteristics.
(A) the characteristics of independence Independence is the essential feature of auditing, and it is also a necessary condition to ensure the smooth progress of auditing.
(2) Authoritative characteristics The authority of audit is a necessary condition to ensure the effective exercise of audit rights.
(C) The characteristics of impartiality and authority are closely related to the impartiality of audit.
Financial statements: Financial statements can fully reflect the financial position, operating results and cash flow of an enterprise.
However, the data in financial statements alone can not directly or comprehensively explain the financial situation of enterprises, especially the quality of business conditions and the level of operating results. Only by comparing the enterprise's financial indicators with relevant data can we explain the enterprise's financial situation, so it is necessary to analyze the financial statements.
A good analysis of financial statements can correctly evaluate the financial situation, operating results and cash flow of enterprises and reveal the future rewards and risks of enterprises; It can check the completion of enterprise budget, evaluate the performance of managers, and help to establish and improve a reasonable incentive mechanism.
1. Communicate effectively with the financial department. 2. Correctly evaluate the business performance of the enterprise. 3. Provide support to decision makers from a financial perspective. 4. Understand the three major statements of the enterprise from different angles of owners and operators. 5. Quickly identify possible fraudulent elements in financial data. 6. Learn to analyze the working capital of the enterprise and examine the shortcomings of the enterprise. 7. Analyze the profit level of the enterprise from the cash flow statement.