Name: Delgado,Cresilda Q.

Date submitted: 12/10/2020

Time and schedule: 10:30-12:00AM Score:

1. What is the real importance of Trend and Ratio analysis on the minds of an investor? Explain further.

The real importance of Trend and Ratio analysis on the minds of an investor is that it helps to
identify the strength and weaknesses of the firm. It also help to an investor measure the relative
performance of different financial measures that characterize the firm's financial health. Ratios are very
usefel for determining the interrelationships between numbers and it us useful to firms and investors in
order to analyze its financial position, liquidity, profitability,risk,solvency, efficiency and operations
effectiveness and proper utilization of funds which also indicates the trend or comparison of financial
results that can be helpful for decision making.

2. What is the reason why business should prepare a good and sound Financial Position? Elaborate more.

Once your in a business, it us essential to plan and tightly manage its financial performance. It
suggests action points to help you manage you business's financial position more effectively and ensure
your plans are practical. It is very important part of you business at various levels you make the kind of
improvements that will benefit the overall health of your business. In a business world financial reporting
provides crucial information that you can use to make better business decision.

3. What is the significant contribution of an Internal Control System in a company?

The significant contribution of an Internal Control System in a company , they ensure that there
is an efficient and effective systems of internal controls that results in accurate financial information, as
well as the safeguarding of an assets. They must assume the responsibility to shareholders for the
accuracy of financial reporting, create and maintain a properly documented internal control system.
Create and maintain the proper environment to enforce the necessary controls that may require the use
of policies,procedures and identify the risks inherent in the business. Because errors and fraud can and
do occur thats why it is important that you establish safeguards for you plan to ensure you can adequately
meet your fiduciary responsibility.

4. If you were to create a policy to promote internal control what would it be and why? Explain your
answer based on your own analysis.

So for me I would create a policy like evaluate the performance of all personnel . As you study the
basic procedures and actions of an effective internal control structure, remember that even small
companies can benefit from using some internal control measures. Preventing theft and waste in only a
part of internal control.
5. Do you think Ratio and Trend Analysis can track organizational performance? Reinforced you answer.

Yes, its because one of the financial statements of an organization are prepared they need to be
analyzed and one such tool to analyzed and asses the financial situation of a firm is ratio analysis. It also
help to identify problems and helps the organization better understand its fiscal position in the economy.

6. What do you think is the role of an Internal Auditor, how this differs to External Auditor
in terms of duties and responsibilities?

The role of an Internal Auditor it has a major impact on the presence of adequate control systems.
It is responsible for reviewing the existence and effectivenss of control systems in a variety of areas, and
reports to management on the adequacy of those controls as well as any deficiencies. They help to design
the company’s organising systems and help develop specific risk management policies. They also ensure
that all policies implemented for risk management are operating effectively. Internal auditors will examine
issues related to company business practices and risks, while external auditors examine the financial
records and issue an opinion regarding the financial statements of the company. Internal audits are
conducted throughout the year, while external auditors conduct a single annual audit.