ACCT 461 Fraud Examination Financial Statement Analysis Assignment Summer 2012 Part 1 Company Background, Performance and

nd Fraud Risk This project has four parts. First, using any resources at your disposal write a 4 to 6 page background paper about the company 1 and the industry in which it operates given special attention to fraud risk factors. Treat the company as a potential audit client with a focus on fraud risk. Secondly, follow the company and at least one competitor in the industry for the period from June 18 through July 13 in the WSJ or other financial media. This would include graphing daily stock and bond prices as well as summarizing any other company or industry related articles which might appear during that 6 week period. Need to know your company and its industry. Part 2- Financial Statement Analysis Horizontal & Vertical Analysis Prepare a horizontal & vertical analysis for your company and its competitor for the last 5 years. Identify trends and other things of interest. Graph as appropriate. Ratio Analysis Calculate, graph and discuss the following financial statement ratios for the last 9 years for your company and the major competitor. Current Ratio Quick Ratio A/R Turnover Days Sales in Receivables Invtl Turnover Days Cost of Sales in Inventory Operational Cycle Working Capital Debt/Equity Times Interest Earned Asset Turnover Net Income/Sales Part 3- Z-Score Project As we discuss financial statement analysis, we will encounter a composite ratio called Z-Score. Using a spreadsheet template to be provided, you will need to calculate, graph and interpret the Z-Score for your company and its competitor for the last 10 years. Point Values Parts 1and 3 are worth 30 point each. Part 2 is worth 40 points for a total of 100 points. Due Date: All projects are due on July 18. Each student must select a company and competitor that are unique. The company and competitor must be US manufacturers with at least 10 years of history. Please send me an e-mail with your company choice ASAP with assignment being made on a first-come, first-served basis.
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