Interview # 2 Q.2 Why you F.S and what kind of information do you use?

As being an auditor of company we use F.S to give opinion on the F.S.Beside these we not only just use give opinion servive but also provide service of three type.eg Financial Analysis Evaluation Business analysis Auditing Within the auditing service we have opinion services eg Insurance & endurance service Auditing the F.S of company

Q.3 do you use both the internal and external data while doing business analysis? Analysis & Evaluation Historical data Internal (Budgets and figures) Forecasting data So for the purpose need of financial statement is necessary Q.4 for decision in future do you use ratio or some what else? For project of next year data especially sales projection has to look the last years sales data. Suppose a projectile a company say A as beverage industry.as a see the overall industry growth is 2% and my sales are growing by 3% this the point where ratio comes in order to predict future data. We do not use only ratio but use a mixture of data gathered forms all departments of the company. With mixture of historical, and internal current figure and ratio We predict and analysis the company. Q.5 Do you use both qualitative and quantitative analysis? As with respect to an auditor we use both qualitative and quantitative analysis deeply upon the nature of the business. As if we are analysis a manufacturing concern business we demand the currently and last five years F.s in order to audit and check out the major increase in the different integrated assets. As while audit on data of a bank e.g.we check if there is considerable increase in the assets of the bank we see either.their interest income has increased or not. Suppose their loans and advances increase by 20% as company to last year. And l see their interest income increase by 1%,that gives an ideas,that l have

Q.6 what are the most important ratio you consider while auditing. Lt depends upon the nature of the business. As for example if l am auditing a manufacturing concern business. I must view the inventory turnover, receivable turnover. Suppose Sheezan is producing mango bottle as this is a seasonal business so l check out sale at that point when the season is on and off and make comparison of both to find either there is a critical factor exit or not. l check if inventory turnover is very low can the season is on or same as in the offseason ,getting me to the point that there is something wrong in the bottom also check the of inventory, as in case of manufacturing concern it should be too high showing low to turn over.

Q.7 do you judge the F.S on case to case bases or you have an automatic analysis system? NO, when l am auditing any company it is different from the other company. As if l do an analysis on companyAit is not possible that l implement that same analysis method to a company Bunless otherwise it can help me to create synergy between two different but same companys by product selling. As Coca cola and Pepsi are selling fizzy drinks as in case l can use my learning to the subsequent company l audit otherwise not possible. Q.8 According to your experience what are the most commonly used method of analysis in your field? What we are overall analytical Review it is not a ratio. At some what gives us the indication of increase or decrease as compare to prior year as index number and trend analysis.in the overall scenario some figure should have decrease. As if sales increase production cost should also increase. Followed but the assets increase e.g. receivables, creditors so there is a link as for manufacturing they have sales and the income statement, on the other side of balance sheet. They have A/R,A\P and inventory. On the other side while considering ratio l have to see that either ratio are matching with each other or not. As on the base of monthly data If the A/R Recovery record is 60 days. Suppose that 2 million sales, then l calculate the monthly end sales from data provided by company to check that either company is filling the 60 days policy or not as mentioned. Q .9 Do you suggest bench mark to some company on the bases of best places in the markets? Normally, we are not allowed to share any data to other company. As being an ethical view to keep confidentially, unless and until l am doing an assignment of bench marking .suppose Pepsi, Coca Cola in that l can suggest some company the best market rice is this: followed by evidence

not only but detailed given and can also give rate to the company on the bases of bench mark scale. Q.10 what is difference between multinational govt , Private sector Auditory? The way managing data is totally different respectively in these entities.as in multinational good qualitative and quantitative data followed by good management practices are being seen by me. Q: 11 what about the regulation following status by each entity e.g. multinational, private? It depends whom they are answerable as banks follow the regulation most. While talking about the private company being a single or less owner he can do any things as he/she wishes. But my duties are to see ISA and IFA rules whatever the statement is given to me. Q: 12 do you use notes, which notes are most helpful? It depends upon usage of financial statement, if you as a company want to raise funds by taking loan the company asks that what are your auditors and what is their rating in the market place, the bank itself make or exaggerate critical points in the financial statement and demanding evidence against important notes such as related parties notes, investment in any subsidiary, so every material note is important while considering or taking decisions on the financial statements. Suppose if an auditor gives a qualified opinion on a financial statement on note 4 than note 4 is very important (as not complying the ISA or IFR rules or somewhat other than). For example you have a sale of 5 billion as 5 billion does not make any sense but if you go to note of sales you will come to know that what does the five billion actually means, suppose you see sales on credit and sales on cash you than came to know that what is the ratio b/w credit and cash sales, beside these you can also take help from notes to calculate the inventory turnover, sales turnover and account receivable turnover to judge/evaluate the companys operations efficiency. Q: 13 Do you demand any other data than note to make sure that the written material is correct or not? For being an auditor I have done my homework first then financial statements and notes are there. While attaining additional information the auditor can but the user other than the auditor cannot demand but it is very important for user to understand the notes fully. Q: 14 Do you use annual report or quarterly report as well? For listed companies quarterly reports are important as well as annual. As there EPS during quarters affecting the share price, so we have to audit the financial statement on both annual and quarterly basis. Q: 15 what financial statement you use most often We mostly use three statements i.e 1. Profit and loss account 2. Balance sheet 3. Cash flow statement