Cracking

THE CASE
Prepare for Internship

Start-up with Big4 Academic

Hanoi, April 2017
Training Agenda (From Start-up with Big4 Course)

 What is a case?
 What are companies looking for in the case interview?
 Process for Solving Cases
 Clarify
 Structure
 Analyze
 Conclude
 Example Case

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What is a case?

Hypothetical, open-ended
business issue or dilemma

Combination of
Types: Verbal Case Written Case
Verbal/Written

` A short verbal ` Detailed case is ` A short verbal summary

summary of a situation provided in written is provided, with
or complication is supporting
format, often including
provided tables/graphs
tables and/or graphs
` Interviewee must ask ` Tables/graphs may be
` Some analysis of data will
probing questions to automatically provided, or
determine root cause and be expected
only given in response to
form recommendation ` Interviewee must respond
good questions
to specific questions posed
in the case

Helpfulness of the interviewer is highly variable

What are companies looking for in the case interview?

Analytical Skills People Skills

` Problem definition and solution ` Communication skills

structuring Listening
` Analytical ability Presentation / speaking
Quantitative capabilities ` Business acumen
` Ability to: ` Confidence
ƒ Synthesize data Performance under pressure
ƒ Think creatively
ƒ Tolerate ambiguity
ƒ Defend hypothesis
Process for Solving Cases

CLARIFY STRUCTURE ANALYZE CONCLUDE

Ensure complete Develop Request Synthesize

understanding approach to information to findings into
solve problem test hypothesis recommendations
Process for Solving Cases - Clarify

CLARIFY STRUCTURE ANALYZE CONCLUDE

Clarification is vital to ensuring your understanding of the problem

` Listen closely to problem definition
` Ask questions to improve understanding
` Paraphrase the original question to confirm understanding

If you misunderstand the problem you will get on the wrong

track!
Process for Solving Cases - Structure

CLARIFY STRUCTURE ANALYZE CONCLUDE

A structure will allow you to systematically investigate the issue

` State your hypothesis upfront – this demonstrates insight
` Develop a structure or framework to approach the problem
` Let the interviewer know what structure you plan to use

If you do not structure your analysis, you will miss critical issues
that need to be explored!
Process for Solving Cases - Structure

CLARIFY STRUCTURE ANALYZE CONCLUDE

Choose a framework to structure your answer:

` Choose a framework that fits the problem, do not try to fit the problem
into a framework
` Develop your own framework or modify an existing framework, as long as
it makes sense – this demonstrates your adaptability
` Avoid referencing a pre-made framework by its name – example: “I‟m
going to use Porter‟s Five Forces to determine the issues affecting
company X”
` Outline the components of the framework in your own words
Process for Solving Cases - Structure

CLARIFY STRUCTURE ANALYZE CONCLUDE

Problem Type Framework Options

M&A/Execution ` Value Chain

`

` Porter‟s 5 Forces
Competitive Strategy
` SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats)

Organizational ` 7-S (Strategy, Structure, Systems, Style, Staff, Skills, Shared

Values)

` 4 P‟s (Product, Price, Place, Promotion)

` 3 C‟s (Company, Competitors, Customers)
Marketing
` Growth/Share Matrix
` 2x2 Matrix

` Profit = Revenue – Cost

Profitability ` Revenue = Price x Quantity
` Cost = Fixed Costs + Variable Costs

General ` Minto Pyramid

Process for Solving Cases - Structure

CLARIFY STRUCTURE ANALYZE CONCLUDE

Additional tips on structuring:

` Logical structuring is essential
ƒ Components should be MECE (Mutually Exclusive,
Collectively Exhaustive)
` Structure your answers and how you think
ƒ Think out loud – say what you are going to say, say it and
say what you said
ƒ Do not lose sight of your structure when speaking
Process for Solving Cases - Analyze

CLARIFY STRUCTURE ANALYZE CONCLUDE

Analyze the problem using your chosen framework:

` Explore each major area of your framework by asking the
interviewer broad questions
ƒ Ask more specific questions about the areas that may result
in useful information
ƒ Recap findings at the end of each area before moving on to the
next one
ƒ Abandon areas that will not yield helpful information – take
hints from the interviewer

Be flexible and take cues from the interviewer!

Your interviewer will give you hints about what areas are important.
Process for Solving Cases - Conclude

CLARIFY STRUCTURE ANALYZE CONCLUDE

The conclusion is the “executive summary” of the case

` Summarize your key findings
` State recommendations – was your hypothesis correct?
` Discuss potential risks related and possible mitigation
strategies
` Discuss implementation and next steps

Your conclusion will demonstrate your ability to synthesize

information and present a logical, convincing argument.
Process for Solving Cases – DOs and DON’Ts

DOs DON’Ts

` Relax – Take a deep breath before you start
` Take your time (within reason) - Once the
interviewer gives you the problem, ask for
few minutes to structure your approach
` Listen to your interviewer – ensure
understanding and take hints
` Think out loud – make sure your thought
process is structured
` Be concise – Once you have identified
underlying problems, begin to formulate
possible recommendations
` Ask logical questions - The interviewer will
only provide information if you ask. Make
sure your questions follow your structure
` Be confident without being arrogant
` Don‟t jump to an answer right away
` Don‟t make assumptions without
clarifying with the interviewer
` Don‟t worry about the right answer,
worry about the right approach
` Don‟t exclusively rely on pre-made
frameworks – modify or develop your own
whenever possible
` Don‟t appear frustrated or flustered
Example Case

CASE 01 (Accounting)

Sanjay Motors is a trading and servicing company and its fiscal year ends
at 31 December 2016. The Company has total receivable outstanding at
that day of $500,000. A receivable accountant gives a review of the
receivables balances
and highlights two following problems.
A, One of its customers, Mann Co, has gone bankrupt. Mann Co bought a
car cost $50,000 but only paid $36,000. The rest amount is now considered
irrecoverable.
B, At 1 November 2016, Sanjay Motors is owned $20,000 by Jackson for
servicing and repair work carried out on Jackson‟s fleet of motor vehicles.
Of the $20,000 outstanding, $3,500 relates to work that Jackson feels was
substandard. Despite of discussions and negotiation, and although Jackson
is generally a „good customer‟, Sanjay is doubtful that Jackson will ever pay
this
$3,500.
At 1 January 2016, Sanjay Motors had an allowance for receivables of
$18,000 and it wishes to set up a general allowance of 2%.

Required:
(i) How should the accountant do in this circumstance?
(ii) Explain the impact on Financial Statements should the issue remain
unresolved.
CASE 02 (Accounting)

Binh Minh Company operating in manufacturing sector has its fiscal ended
31 December and monthly depreciation policy.
a) On February 1, 2013, company started to build a new warehouse. The
accountant recorded all the cost of VND 240 million at that date to Tangible
Non-current assets account, and started to depreciate it from this date with
the rate of 5% per annual. This new warehouse was completed and used
from July 1, 2016.
b) On August 1, 2016, the company bought a new machine for sales
department at a cost of VND 26.4 million (included VAT 10%). A newhired
accountant recorded it as a non-current asset and depreciated it using
straight-line method with the rate of 20% per year.

Required:
- Comment on the acceptability of the accounting treatment and disclosure
as indicated above.
- Explain the impact on Financial Statements should the issue remain
unresolved.
- Adjust all the occurred error
Case 03 (Auditing)

Hexa Ltd operates a chain of food wholesalers across the country and its
year end was 30 September 2016. The final audit is nearly complete and it
is proposed that the financial statements and audit report will be signed on
13 December. Revenue for the year is £78 million and profit before taxation
is £7.5 million. The following event has occurred subsequent to the year
end.
A customer of Hexa Ltd has been experiencing cash flow problems and its
yearend balance is £0.3 million. The company has just become aware that
its customer is experiencing significant going concern difficulties. Hexa
believe
that as the company has been trading for many years, they will receive
some, if not full, payment from the customer; hence they have not adjusted
the receivable balance.

Required
(i) Discuss whether the financial statements require amendment;
(ii) Describe audit procedures that should be performed in order to form a
conclusion on the amendment; and
(iii) Explain the impact on the audit report should the issue remain
unresolved.
Case 04 (Auditing)

Helicopter Ltd operates a chain of food wholesalers across the country and
its year end was 30 September 2016. The final audit is nearly complete and
it is proposed that the financial statements and audit report will be signed
on 13 December. Revenue for the year is £78 million and profit before
taxation is £7·5 million. The following event has occurred subsequent to the
year end.
A key supplier of Helicopter Ltd is suing them for breach of contract. The
lawsuit was filed prior to the year end, and the sum claimed by them is £1
million. This has been disclosed as a contingent liability in the notes to the
financial statements; however correspondence has just arrived from the
supplier
indicating that they are willing to settle the case for a payment by Helicopter
Ltd of £0.6 million. It is likely that the company will agree to this.

Required
(i) Discuss whether the financial statements require amendment;
(ii) Describe audit procedures that should be performed in order to form a
conclusion on the amendment; and
(iii) Explain the impact on the audit report should the issue remain
unresolved.