Auditor's Report
Has any auditor given a qualification to the company in last 3-5 years?
Has the auditor resigned in the last 3 years?
What does the auditor says about the internal financial controls?
What's the qualification ?
What's his remuneration?
Does the auditor have a genuine website & Linkedln profile?
What's the revenue growth vis a vis the auditor's remuneration growth?
What are the key audit matters(KAM) in the business?
What's his view on the accounting policies Of the business?
Any red flag or doubt he has pointed out?
Business Model
How does the company make money?
What type of products/services are these?
How is the revenue recognized?
Is the company's products or services discretionary or what?
What's the type of industry a company is in?
What about the competitive intensity?
How's the volume growth if a manufacturing business?
Corporate Governance
Understand all the related party transactions!
What is the auditor saying about the transactions?
How much the growth in salary of staff?
What's the median salary of employees to chairman's?
How is the auditor behaving?
Has the CFO, CEO & Independent directors resigned in last year?
How's the auditor's report! – Opinion?
Who is the auditor?
What's the management saying about the business performance.
What guidance are they giving for the future?
What's their view on the industry?
Understand the reason behind the revenue growth or degrowth!
Look for the margin guidance as well
What are the capex plans
What happened with the previous capex plans?
What do they say about the competition?
How the industry & company Will evolve in coming times?
Notes to Accounts
Which depreciation method is being used?
What type of accounting policies are being applied?
Are accounting policies being changed over & over again?
Look at the different schedules & their duration!
Has company written off any asset or intangibles?
What about the competitive intensity?
How's the volume growth if a manufacturing business?
Corporate Governance
Understand all the related party transactions!
What is the auditor saying about the transactions?
How much the growth in salary of staff?
What's the median salary of employees to chairman's?
How is the auditor behaving?
Has the CFO, CEO & Independent directors resigned in last year?
How's the auditor's report! – Opinion?
Who is the auditor?
Management discussion and Analysis
What's the management saying about the business performance.
What guidance are they giving for the future?
What's their view on the industry?
Understand the reason behind the revenue growth or degrowth!
Look for the margin guidance as well
What are the capex plans
What happened with the previous capex plans?
What do they say about the competition?
How the industry & company Will evolve in coming times?
Notes to Accounts
Which depreciation method is being used?
What type of accounting policies are being applied?
Are accounting policies being changed over & over again?
Look at the different schedules & their duration!
Has company written off any asset or intangibles?
No comments:
Post a Comment