Module 03 Discussion – Ratios
Please calculate the financial information for Summit Inc. in the spreadsheet below and answer the following questions.
Module 03 Discussion – Ratios.
Summit, Inc. Income Statement
In your first post this week comment on the ratios required for analysis for Summit, Inc. Which do you feel will be most telling and why? Why is horizontal analysis important?
Bulleted questions
For your second post this week please comment on the bulleted questions below.
- From the list of ratios, choose one and explain how the result will affect the audit planning. Try to choose a different ratio than your classmates or a different way it will affect the audit planning.
- From the list of Horizontal Analysis, choose one and explain how the result will affect the audit planning. Try to choose a different ratio than your classmates or a different way it will affect the audit planning.
- Looking at the information given, choose an account to test in relation to the IT internal controls. Explain how you will test and why.
- Comment on or provide feedback to a classmate on their choices.
Please make your initial post by midweek, and respond to at least one other student’s post by the end of the week. Please check the Course Calendar for specific due dates.
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