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 full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92.5% of users find it useful
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"

Download file to see previous pages 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 ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“AuditingSelect a company quoted on the UK stock exchange. Obtain, or Case Study”, n.d.)
AuditingSelect a company quoted on the UK stock exchange. Obtain, or Case Study. Retrieved from
(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.
“AuditingSelect a Company Quoted on the UK Stock Exchange. Obtain, or Case Study”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF AuditingSelect a company quoted on the UK stock exchange. Obtain, or download a copy of, the company's last annual report c

Annual report about apple company

... of the operation of the product ensures that the company maintains a competitive edge over its competitors. Bibliography List. Apple Inc. 2012. Annual Report for the fiscal year ended September, 2012. [online] Available at: [Accessed on 6 May 2013]. Drewniany, B. L. and Jewler, A. J. 2010. Creative Strategy in Advertising. 10th ed. Boston: Cengage Learning. McDonald, M H. B. and Keegan, W. J. 2002. Marketing Plans that Work. Woburn: Butterworth-Heinemann. Schneiders, S. 2011. Apple's Secret Of Success - Traditional Marketing Vs. Cult Marketing. Hamburg: Diplomica Verlag GhbH.... channels and salespeople, who are able to convey and explain the functionalities of the products while demonstrating its use and advantages over the competitors,...
4 Pages(1000 words)Essay

British Airway is a listed industrial company on the London Stock Exchange,obtain its published annual reports and aacounts the past financial data. The required rate of return on equity was about 9.9%. All these figures were applied to the Earning Price Ratio model which priced the company's equity at 334p per share. The Earnings Price Ratio model with growth suggests that the British Airways plc's fundamental was valued at 334p per share at the end of the year 2005 based on the information obtained from 2005 annual report and accounts. The company's actual share price as at 30/12/2005 was 334.00p per share in the London Stock Exchange ( This further explores that the price of British Airways' shares in the market...
10 Pages(2500 words)Essay

Stock Exchange, Railways and Company Law

...partner, the fact that one partner could bind the whole against their will, the difficulty of getting rid of an unwanted partner, and generally the ease of fraud amongst partners"3. Liverpool's bill after numerous debates made the metal joint stock companies present annual report on their actions to the House of Parliament. Shares were then personal property selling of which was a formal transaction and only after 1815 more than 140 company shares were quoted on stock exchange which increased the need for legalization of such trade and has lead to rising sues. Some scholars argue that some sort of...
4 Pages(1000 words)Essay

M &S annual report

...FINANCIAL ACCOUNTING MAN1026 ASSIGNMENT SPRING 2009 Assignment of Team: URN The Corporate Governance ment (pages 39 to 47) deals with the way that the company is managed and its relations with its shareholders. What rules do the Directors follow when preparing this section? Answer The board of directors of Marks and Spencer follows ‘The Combined Code on Corporate Governance’ which is applicable to all companies listed on the London Stock Exchange. This Combined Code on Corporate Governance’ was updated by Financial Reporting Council in 2006 and it is now known to be the ‘Code’. The ‘Code’ enables M&S to build long term sustainable...
4 Pages(1000 words)Essay

Hospitality Company Annual Report Analysis

...from annual membership dues and exchange fees for members trading their intervals. c) Vacation Ownership- develop, market and sale and financing of VOI (vacation ownership interest) for prospective customers. This business segment provided some of the highest revenues for the company in 2010. Wyndham international has done an excellent job of aligning its business model, brand portfolio and corporate culture to fit their global mission statement of becoming “the global leader in travel accommodations, welcoming our guests to iconic brands and vacation destinations through our signature Count On Me! Service.” In 2010 the company generated revenues of...
2 Pages(500 words)Essay

Company Research - Australain Stock Exchange

...Company Research: Investments & Resources Ltd (AYI) Investment and Resources Ltd (AYI) is an investment firm that focuses on investment projects in two main countries, namely: Australia and Asia. The company at the same time gives greater attention to the Australian Resources companies. Besides, Investments and Resources Ltd also has other diversified investments in the whole world and these cover sectors like telecommunications, clean technologies, healthcare, litigation, lending and financial services. It was first listed with the Australian Stock Market on 2nd October, 2007 with its share registry being Computer-Share Investor Services Ltd. Trend in the...
5 Pages(1250 words)Research Paper

Company stock profile

...future contracts and payments. The second division includes the Division of Resources, which aids in the exploration and extraction of mineral, water and rock for profit. GEO updated its monetary report for the whole year of 2014 and issued a guidance report for investors towards the second quarter of the year. The organization expects its net income to rise from $1.78 to $1.86 per share. Secondly, it also anticipates the annual revenue to range between $i.60 billion and $ 1.62 billion. The enterprise also increased its Net Operation Income to an array of $452 million to $458 million. For the second part of the 2014 financial year, the total amount of diluted shares aims at increasing...
3 Pages(750 words)Essay

Toll Company Annual Report

...DatAnalysis Database, the company’s 2013 annual report (hard copy not necessary) and financial data in a excel spreadsheet for the past 10 years. It will be sufficient to use an electronic copy to use as the reference material for answering the case study questions. Document 2: This Case Study Workbook. This is to be used when answering the case study questions and will be used to assist in completing the assignment response. Morningstar DatAnalysis Database – (available via libguides or alternatively the JCU library databases): to obtain the necessary company annual reports and...
3 Pages(750 words)Case Study

Tesco Company Annual Report

...Tesco company Annual report Introduction Tesco Company was started in the year 1919 from a market stall in East End England by Jack Cohen. The company experience growth and expansion to the Tesco known today, which operates in 12 countries in the world with a number of stores in these countries. It deals with a variety of products including household goods, freshly baked products and groceries. The company also has a share in the service industry through Tesco bank. The diverse products and services contribute positively to the success of the company through diversifying investments so that when one sector is not...
5 Pages(1250 words)Coursework

S&S Air Company

...S&S AIR COMPANY Internal growth rate= (Return on Asset x Retention ratio Return on Asset x Retention ratio) Return on Asset= 2,029,766/19,986,170=0.10 Retention ratio= 1-dividend pay-out; Dividend pay-out= 610,000/2,029,766=0.3 1-0.3=0.7 IGR= (0.1 X 0.3)/1-(0.1 X 0.3) 0.03/0.97=0.031 3.1% Sustainable Growth Rate= (Net income/ Shareholder’s equity) x (1-retention ratio) (2,029,766/11,435,815) x (1-0.7) 0.18 x 0.3=0.053 5.3% Internal growth rate: This percentage of (5.3%) is the maximum growth S&S Company can grow with external financial aid. Sustainable Growth rate: Refers to the growth rate a...
1 Pages(250 words)Case Study
sponsored ads
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.

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