This is our sixth and final look at financial statements. In this article we discuss how to use financial statements in your business. Using financial analysis Attorneys and accountants rely heavily on financial reports when buying or selling a business, selling shares in their company, obtaining conventional and non-conventional financing, tax matters and on an [...]
Types of reports An independent Certified Public Accountant (CPA) can provide three levels of services related to the financial reporting of a business enterprise. These are a compilation, review, and an audit. A compilation provides the lowest level of assurance. A compilation engagement is the most common for small closely held businesses because it is [...]
This is the fourth of our six part series on financial statements for businesses. Here we look at analyzing financial statements and what they can tell us. Financial statement analysis An important part of any business analysis is a comparison of the financial performance of the subject company to benchmark data available in the marketplace. [...]
Here is the third of our six part series on financial statements. In this article we discuss probably the most important information, the cash flow. Cash-flow statement The statement of cash flows reports a company’s sources and uses of cash. These sources and uses are broken down into three distinct categories: Operating activities–cash from the [...]
This is the second of our six part series discussing financial statements. In this article we look at how liabilities are treated and the income statement. Liabilities The liabilities of an enterprise can best be described as the claims against the assets of the enterprise. As is the case with assets, liabilities are segregated between [...]
This the first in a six (6) part series discussing one of the most important items a small business owner/manager needs to have and understand. A company’s financial statements. The company’s lifeblood, revenue and expenses, is accurately reflected in the financials. Moreover if you ever want to sell or buy a business, the financial statements [...]
Difficult Issues in the Investigation Process a. Dealing with Uncooperative Complainants or Retractions Sometimes, complainants have a change of heart after making their complaint and decide that they no longer want to cooperate or that they want to retract their complaint. In this event, an employer still has an obligation to conduct a thorough investigation, [...]
The Investigation Report 1. Should You Write a Report? Occasionally, a client will ask for a verbal report, but nothing in writing. Although this is an option in some circumstances, it’s generally not a good option. Keep in mind that, regardless of the existence of a written report, your notes as an investigator will almost [...]
Conducting the Interviews 1. Effective Interviewing Techniques Schedule much more time than you expect it will take to complete each interview, as well as for the entire investigative process. Ask open-ended questions and let the employee talk freely, even if he or she is just venting about feelings. Restate information or allegations frequently to [...]
Planning the Investigation A. Establishing Independence and Neutrality The most important early step to take in the investigation process is to make certain that your independence and neutrality are established among the players in the investigation. This independence often must be established with both the employer (possibly your client or your supervisor) and with the [...]
