Using financial analysis to inform the audit plan

ASSESSMENT CRITERIA

1. Ratios relevant to the determination of liquidity, profitability, activity and long-term solvency are calculated and advised on from a set of financial statement.
2. Different users of municipal financial statements are identified and their information needs presented and explained to inform financial reporting system.
3. Limitations of published financial information are recognised with reference to improving operating capability of a municipality.
4. Results of an analysis of profitability and solvency risks are interpreted in the assessment of financial health of a municipality.
5. Multivariate financial analysis are carried out and communicated to appropriate users of municipal financial statements.
6. Ratios relevant to the determination of liquidity, profitability, activity and long-term solvency are calculated and advised on from a set of financial statement.
7. The financial performance report is prepared to enable an analysis of the overall financial state of a municipality within the framework of financial reporting.