ANALYTICAL PROCEDURES DESIGN FOR ASSESSING PROFITABILITY DURING THE AUDITING OF HOUSING MANAGEMENT COMPANIES’ FINANCIAL STATEMENTS

2017 ◽  
Author(s):  
Liudmyla Sokolenko ◽  
Keyword(s):  
Business Processes ◽  
Financial Statements ◽  
Continuous Operation ◽  
Debt Management ◽  
Management Company ◽  
Use Of Resources ◽  
Time Period ◽  
Analytical Procedures ◽  
The Impact

The paper studies approaches to the analytical procedures design for assessing profitability in auditing of housing and communal services management companies’ financial statements in order to increase the validity of the auditor's conclusion. The purpose of the article is to prove the usefulness of using analytical procedures for assessing profitability of management company’s financial statements during its auditing, formulating their tasks and directions of information and documentary support. It has been established that the use of economic and mathematical modeling and the calculation of the panel of profitability indicators as analytical procedures essentially make it possible to assess the management company activity efficiency, as well as use of resources, and the effectiveness of debt management. In article the auditor’s tasks of analytical procedures for assessing the profitability of housing and communal services management company were specified: 1) assessment of the management company’s profitability trend during the last reporting periods for establishing general trends in its performance and future activities development; 2) identification of factors that determine management company’s profitability changes over the analyzed time period, that will make it possible to record significant ones and describe potential threats to profitability; 3) determination of reserves for increasing profitability for specific business processes or types of activities; 4) establishing the impact of changes in profitability on the management company’s ability to ensure the continuous operation. A list of profitability indicators performance has been formed. They should be calculated in the path of analytical procedures. Also it is recommended to draw up a working document "Analytical procedures for assessing the profitability of a management company". Basing on the content of profitability indicators and the possibilities of their calculation in the auditor's analytical procedures, auditor’s considerations have been formulated. They should guide the auditor in interpreting the calculated indicators.

The Impact of Liquidity on Islamic Banks Profit:  A Study on A Sample of Saudi Islamic Banks for the period 2013-2018: أثر السيولة في ربحية المصارف الإسلامية: دراسة عينة من المصارف الإسلامية السعودية للفترة الزمنية 2013-2018م

2020 ◽  
Vol 4 (14) ◽  
Author(s):  
Haifa Saleh Al-Akel, Najla Ibrahim Abdulrahman
Keyword(s):  
Analytical Methods ◽  
Financial Statements ◽  
Scientific Journals ◽  
Islamic Banks ◽  
Analytical Methodology ◽  
Positive Effects ◽  
Time Period ◽  
Index Level ◽  
The Impact ◽  
Index Effect

This research aimed to study the effect of Liquidity on Saudi Islamic banks profitability, to achieve the goals of the research, the researcher has determined a sample of Saudi Islamic banks, the sample included Al-Rajhi, Al-Inma and Al-Bilad, the research focuses on the time period 2013-2018. The research used a descriptive methodology for the theoretical part by gathering previous studies, studies and scientific journals, for the applied part, the research used an analytical methodology by collecting financial statements of the study sample to use these data for hypothesis tests using statistical analytical methods, the results show that there is a statistically index effect on the index level (0.05) of the Liquidity ratio on the return of assets index in Saudi banks, they also show that the liquidity is inversely proportional to the return. The research recommended that Islamic banks should expand their services and attract depositors to take advantage with them in investment operations, This will make positive effects on their profits, in addition to that, Islamic banks administrations have to evaluate Liquidity risks continuously to deal with surplus and deficit.

scholarly journals The Effect of Disclosure and Transparency Criteria In Saudi Banks on The Financial Ratios Indicators

2019 ◽  
Vol 25 (116) ◽  
pp. 290-303
Author(s):  
Mohammad Kamal Kamel Afaneh
Keyword(s):  
Performance Indicators ◽  
Banking Sector ◽  
Saudi Arabian ◽  
Financial Statements ◽  
Monetary Authority ◽  
Financial Indicators ◽  
Return On Assets ◽  
Time Period ◽  
Before And After ◽  
The Impact

The study aimed to measure the effect of applying the disclosure and transparency standards criteria adopted by the Saudi Arabian Monetary Authority on improving performance indicators in the Saudi banking sector, by measuring the extent of the impact of the bank's financial indicators represented by liquidity, profitability and return on assets in Saudi banks by applying the criteria of disclosure and transparency, which is one of the Main principles in the list of governance, which was approved by the Saudi Arabian Monetary Authority. The analytical approach was followed to achieve the goal of the study, as the financial statements of Saudi banks were analyzed during a period of 8-year to test four hypotheses related to measuring the presence of statistically significant differences between the performance indicators of banks before and after applying the disclosure and transparency standards imposed on Saudi banks. The results of the research confirmed the existence of an inverse relationship between the bank’s liquidity and the percentage of Saudi banks ’profits. The more liquidity, the lower the profitability level of banks, which indicates that the high liquidity in Saudi banks has led to a low profitability in this time period, and the study recommended that The need to pay attention to the concept of disclosure and transparency among all related parties in Saudi banks, and banks should find a balance between liquidity and profitability  

scholarly journals The impact of debt management on corporate earnings: Indebtedness and its effects on the financial performance of selected Visegrad group enterprises

2021 ◽  
Vol 129 ◽  
pp. 03033
Author(s):  
Katarina Valaskova ◽  
Dominika Gajdosikova
Keyword(s):  
Financial Performance ◽  
Value Added ◽  
Debt Management ◽  
Financial Problems ◽  
International Context ◽  
Mathematical Formula ◽  
Corporate Earnings ◽  
The Impact ◽  
Visegrad Group

Research background: One of the significant problems of corporate financial management in the international context is the appropriate determination of the total amount of capital as well as the correct composition of financial sources to finance the activities of enterprises. The determination of the optimal capital structure, and thus the minimization of the costs of capital have been of interest to authors worldwide for several decades, as they can significantly influence the level of corporate earnings. Purpose of the article: The main aim of the paper is to find a mathematical formula to determine whether the indebtedness of an enterprise is related to any financial problems or does not affect the financial performance of an enterprise and thus contributes to the profitability, i.e. if the debt management is performed efficiently. Methods: To find the mathematical formula, we used the financial data of enterprises operating in the selected Visegrad group and calculated the financial ratios of indebtedness, which were further used in the multiple discriminant analysis. The final discriminant function and calculated centroids allow dividing the enterprises into two different groups, with and without financial problems. Findings & Value added: The results of this analysis can be used in the international context to determine the appropriate level of indebtedness also in other countries, not only in the Visegrad group, which may be helpful for corporate financial managers or creditors, because optimal indebtedness helps generate revenues.

scholarly journals Development of information supplement of reporting forms as an effective way of business management

2021 ◽  
Vol 5 (4(61)) ◽  
pp. 6-14
Author(s):  
Anna Hevchuk ◽  
Liudmyla Shevchuk
Keyword(s):  
Financial Reporting ◽  
Agricultural Sector ◽  
Business Management ◽  
Financial Statements ◽  
Information Support ◽  
Sufficient Information ◽  
Management Decisions ◽  
Use Of Resources ◽  
The Status ◽  
The Impact

The object of research is the information support of settlement operations as an effective way of business management to minimize risks and their consequences in the agricultural sector in today's global economy. This study is due to the lack of accounting practices, namely the low informativeness of reporting forms for business management, which needs to be improved in terms of settlement operations, which should be aimed at the efficient use of resources by agricultural companies. The analysis of the current state of reporting as information support of business management calculations is carried out. It is determined that the internal and financial reporting does not contain sufficient information on the settlement operations of business units, especially taking into account the emergence of new settlement instruments and a system of support for their implementation, including agricultural receipts. The use of agricultural receipts as a new financial calculation tool and an alternative mechanism for agribusiness lending requires informational reporting, which allows to increase the efficiency of management decisions. The study used the stages of modeling the calculation management process for users. For their implementation, the main directions for supplementing the content and components of financial statements f. No. 1 «Balance Sheet» (Statement of Financial Position) and f. No. 5 «Notes to the annual financial statements» are suggested. Management reporting is proposed, namely «Report on the status of settlements within accounts payable» and «Report on the status of settlements within accounts receivable». As well as the development of Section 4 «Risk Report» and Section 5 «Liquidity and Liabilities» of the Management Report. This provides an opportunity to generate useful, objective and relevant information adapted to the taxonomy of financial reporting (according to international financial reporting standards) in Ukraine. This information will assist company management, current and potential investors, lenders and other lenders in making effective management decisions. Compared to similar known methods, the proposed approaches allow to effectively manage the business, providing a high level of control over the state of settlements. The received information support will allow to minimize losses through the impact on risks due to the predictability of their potential consequences, which will contribute to the observance of financial independence and development of the agricultural sector.

scholarly journals External auditor’s analytical procedures and their impact on discovering material misstatements

2020 ◽  
Vol 71 (3) ◽  
pp. 271-300
Author(s):  
Abdul Razzak Alshehadeh ◽  
Abdallah Atieh
Keyword(s):  
Earnings Management ◽  
Commercial Banks ◽  
Financial Statements ◽  
Discretionary Accruals ◽  
Multivariate Linear Regression Model ◽  
Independent Variables ◽  
Study Population ◽  
External Auditor ◽  
Analytical Procedures ◽  
The Impact

This study aims to identify the impact of the external auditor’s analytical procedures on the financial statements and reports for the detection of material misstatements of the Jordanian commercial banks. The impact of independent variables (profitability, liquidity, capital solvency and the employment of funds ratios) on the dependent variable (the detection of material misstatements) was measured. The dependent variable is represented by the earnings management, which is measured by the discretionary accruals. The quantitative standard method was used to analyse the financial statements and analytical procedures; moreover, the Jones Model was used to measure earnings management. Additionally, the multivariate linear regression model was used to test the hypothesis of the study, and to indicate the relationships between the variables. The study population consisted of five Jordanian commercial banks. The data was collected from 2011 to 2017. This study concluded that there is no statistically significant impact of the analytical procedures relating to the ratios of liquidity, profitability, solvency, and employment of funds that the external auditor could undertake to discover material misstatement of the financial statements of Jordanian commercial banks. Finally, the study recommended that auditors should be highly competent and deeply knowledgeable in using the analytical procedures to judge the fairness of financial data and be free of material misstatements.

scholarly journals TINJAUAN MANFAAT PENETAPAN JANGKA WAKTU TERTENTU BAGI WAJIB PAJAK DENGAN PEREDARAN BRUTO TERTENTU

2020 ◽  
Vol 13 (2) ◽  
pp. 53-64
Author(s):  
Taufik Kurachman
Keyword(s):  
Financial Reporting ◽  
Government Regulation ◽  
Opportunity To Learn ◽  
Financial Statements ◽  
Time Frame ◽  
Time Restrictions ◽  
Time Period ◽  
Library Studies ◽  
Qualitative Descriptive

Peraturan Pemerintah nomor 23 Tahun 2018 bertujuan memberikan kemudahan dan juga insentif bagi UMKM dengan menekankan pengurangan tarif menjadi 0,5% dan penetapan jangka waktu tertentu yaitu 7 tahun untuk WP perorangan, 4  tahun untuk WP badan usaha berbentuk koperasi, CV, atau firma dan 3 tahun untuk WP badan berupa PT. Pembatasan waktu bertujuan memberikan kesempatan UMKM untuk belajar pembukuan dan membuat pelaporan keuangan. Tetapi apakah periode waktu releksasi cukup untuk mencapai tujuan? Untuk menjawab permasalahan tersebut, penelitian ini menggunakan metode deskriptif kualitatif, dimana data dan informasi diperoleh melalui studi pustaka dan wawancara dengan UMKM. Studi tersebut memberikan temuan penting. Pertama, sebagian WP belum mengetahui penetapan jangka waktu tersebut. Kedua, sebagian WP belum memahami tujuan penetapan jangka waktu tersebut, Ketiga sebagian WP belum siap untuk menggunakan pembukuan serta berharap penetapan jangka waktu tersebut dihilangkan. Untuk itu DJP perlu meningkatkan fungsi penyuluhan penetapan jangka waktu dan pembuatan laporan keuangan.  Government Regulation no. 23/2018 aims to provide convenience and incentive for MSMEs by emphasizing tariff reduction to 0.5% and determination of a certain period of 7 years for individual WP, 4 years for WP business entity in the form of cooperatives, CV, or firm and 3 years for wp entities in the form of PT. Time restrictions aim to provide MSMEs the opportunity to learn bookkeeping and make financial reporting. But is the time period sufficient to achieve the goal? To answer the problem, this study uses qualitative descriptive methods, where data and information are obtained through library studies and interviews with MSMEs. The study provides important findings. First, some WP does not know the time frame. Second, some WP does not yet understand the purpose of setting that time frame, the third part of WP is not ready to use bookkeeping and expect the determination of that time frame to be eliminated. Therefore, DJP needs to improve the counseling function of the determination of time frame and the creation of financial statements..

scholarly journals Audit of Financial Reporting Documents: Analysis of Process of Determining Materiality

2019 ◽  
pp. 1
Author(s):  
Gerda Jurkonienė ◽  
Justina Stašaitytė
Keyword(s):  
Financial Reporting ◽  
Scientific Literature ◽  
Critical Evaluation ◽  
Financial Statements ◽  
Determination Process ◽  
Wide Range ◽  
Determining Factors ◽  
Materiality Thresholds ◽  
The Impact

During audit of the financial statements of companies, the auditors use a certain level of materiality to determine both the scope of the procedures and the impact of errors on the representation of the true and fair view of the financial statements. International auditing standards leave wide range of possibilities for interpretation of the materiality process, which often raises the question of how the auditor determines materiality. The purpose of the study is to analyze the materiality process and to create a model of the materiality determination process. Methods of information gathering, comparative analysis, critical evaluation, systematization and interpretation of scientific literature and normative acts of audit are used in this article. After analyzing the materiality determination process, it was found that the materiality process consists of four steps: assessment of determining factors of materiality thresholds, determination of planning materiality, determination of performance materiality and determination of clearly trivial misstatement. Based on the analyzed literature, a model of materiality determination process was developed.

ACCOUNTING SUPPORT OF BALANCED SCORECARD OF ENTERPRISES OF HOUSING AND COMMUNAL ECONOMY

2017 ◽  
Author(s):  
Tetyana Kaminska ◽  
Keyword(s):  
Development Strategy ◽  
Balanced Scorecard ◽  
Business Processes ◽  
Service Providers ◽  
Technical Condition ◽  
Financial Indicators ◽  
Labor Costs ◽  
Use Of Resources ◽  
Fixed Assets ◽  
The Impact

The branch features of the enterprises of housing and communal economy are investigated, that to define necessity of application of advantage of system of the balanced indicators at an estimation of efficiency of their activity. The following advantages of application of the system of balanced indicators are established: expands the information base for calculation of the indicators characterizing efficiency of use of resources; provides information on the depreciation of fixed assets and the organization of the production process; discloses the costs of maintenance, training, retraining and social security of staff; identifies the reasons for non-performance of contractual relations by consumers and service providers. We believe that the shortcomings of the system of balanced scores are: the lack of regulations governing the calculation of the procedure and the threshold values of non-financial indicators for further interpretation; the content of the system of balanced scores can be interpreted differently by different groups of users (consumers, employees, management, investors) depending on the chosen development strategy; requires additional costs and additional professional competencies from management staff for implementation; does not show the impact of accounting policies on financial and non-financial indicators; is subjective. The division of efficiency indicators in terms of financial component (allows to estimate reserves for cost reduction, increase profit and profitability), customer (determines the causes of receivables, allows to identify consumers who were provided with incomplete or inadequate quality of housing and communal services), business processes (technical condition of fixed assets, the number of complaints received from consumers and the period during which the elimination of deficiencies, the cost of resources to improve the condition of services provided), staff (compliance of staff qualifications and labor costs). The order of choosing the strategy of development of the enterprise of housing and communal services depending on its purposes (increase of incomes on the basis of rendering of qualitative services, expansion of the range of services, advanced training of the personnel, management of receivables) is outlined.

scholarly journals Measuring the impact of code of ethics on the quality of auditors’ professional judgment

2016 ◽  
Vol 5 (4) ◽  
pp. 54-60 ◽  
Author(s):  
Hussein Mohammed Alrabba
Keyword(s):  
Code Of Ethics ◽  
Financial Statements ◽  
Total Sample ◽  
Professional Judgment ◽  
Questionnaire Method ◽  
The Impact ◽  
Incorrect Information ◽  
Spread Sheet

The quality of decisions and judgment made by auditors has been a subject that has raised a lot of concerns regarding the auditors’ ability to detect and eliminate any errors in financial samples. This study examined the impact of code of ethics on the quality of auditors’ professional judgment in the case of Jordan. A total sample size of 150 auditors in Jordan was selected to investigate the study phenomenon, out of 150 auditor’s 142 auditors’ responded successfully. The questionnaire method of data collection was preferred in this case for its suitability in collecting personal opinions, experiences and outcomes. Regression analysis and advanced spread sheet were used to analyse the collected data. The study found out that different aspects of auditors have varied influences on their ability to detect any incorrect information in accounting statements. For example, it was evident that the integrity, objectivity and independence of auditors are weakly correlated with the ability to notice the incorrect financial information. However, the study discovered that all ethical aspects of audit profession such as the rules governing the rights to advertising, determination of commission, organizations’ name and form, as well as contingent fees have significant impact on auditor’s capacity to identify financial statements’ misrepresentation.

scholarly journals The Impact of an Innovative CEO on the Financial Performance of an Organization

2018 ◽  
Vol 2 (2) ◽  
pp. 123-127
Author(s):  
Kashif Arif ◽  
Sanam Aziz
Keyword(s):  
Panel Data ◽  
Stock Exchange ◽  
Financial Statements ◽  
External Factors ◽  
Future Research ◽  
Statistical Tools ◽  
Time Period ◽  
Large Scope ◽  
Patent Applications ◽  
The Impact

The evident volatile position of Pakistan Stock Exchange shows need for reforms in order to depict better performance in future. However, the external factors are not always sufficient for a better change, the internal performance of organization is also crucially important. This study aims at studying the internal performance of top management i.e., a CEO in an organization by introducing the factor of innovation with the proxy of patent applications. Considering the panel data, the sample consists of companies of varied sectors listed in Pakistan Stock Exchange for three years (2015-2017) time period. The structuring of models and framework for the study in done on the basis of literature available. The data for the study being quantitative in nature is collected from financial statements and different websites. Furthermore, the data is analyzed using multiple statistical tools such as correlation and regression. The limited availability and accessibility to data in Pakistan showed insignificant results nevertheless there is a large scope for future research in this topic.

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