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Critical analysis of business plans and financial projections will focus on:

Summarizing projections and key lines in the profit and loss account, and comparing
them to both historical results and the current years outturn;
Commenting on the consistency of the accounting policies used in the preparation of
projections with those used in historical accounts;
Analyzing sales, volumes, and price change assumptions;
Analyzing the projected cost of sales, manufacturing, and general administration
overheads;
Projecting the effect on gross margins and overheads of planned new product
introductions, ongoing and planned cost saving measures, and expected pricing policies;
Areas of vulnerability and advantages;
Analyzing the financial projection structure, and the underlying economic sense and
arithmetical accuracy of the calculations used;
Commenting on the significant trends and main assumptions underlying the projections;
Assessing the above assumptions, as to whether they are realistic or targets, as well as the
adequacy of contingency provisions, and providing our view of the sensitivities
(quantified).