Assignment on Strategic Financial Statement Analysis

Assignment on Financial accounting analysis
Assignment on Financial accounting analysis
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Assignment on Strategic financial statement analysis
Part A
Answer 1.
Part1.
a. Who prepared the financial statements?
It is prepared by the management, audit committee appointed by the BOD and is
reviewed by the board of directors before submission to the external auditor. It has been
prepared in accordance with IFRS issued by the International Accounting Standards
Board
b. Why was a system of internal controls maintained?
Internal controls system is a set of rules, policies, and procedures that an organization
applies to increase efficiency and strengthen correct policies to be followed. The internal
audit Committee analysis’s the policies used for the internal control system.
c. Who appoints the Audit Committee?
It is appointed by the Board of Directors.
d. Who audited the financial statements?
The financial statement of Transat AT was audited by Ernst & Young LLP.
Part 2.
a. Which financial statements were audited?

Assignment on Strategic financial statement analysis
The audited statements are consolidated financial statements comprising consolidated
statements of income, Balance sheet (change in equity), Cash flow statement for years
ended October 31, 2018 and comparison of year 2017.
b. Why did the auditor consider the company’s internal control?
To control the risks of material misstatement in the financial statements, which may be
due the fraud or error. The auditors consider internal control for accessing those risks.
Internal control by its accounting policies and reasonableness keep the entity’s
preparation and fair presentation of the consolidated financial statements.
c. Are the statements prepared in accordance with IFRS or ASPE?
The statements are prepared in accordance with accordance with International Financial
Reporting Standards (IFRS).
d. Do the consolidated financial statements present fairly, the financial position, financial
performance and cash flows of the company?
Yes, in the opinion of the external auditor E&Y, the consolidated financial statements
present fairly, with respect to material and the financial position of Transat A.T. Inc. as of
October 31, 2018 and 2017. Its financial statement of performance and its cash flows is in
accordance with International Financial Reporting Standards.
Part 3.
a. For fiscal 2018, what amounts did the company report as for year ended 2018:
i. total assets- $1,559,860.
ii. current liabilities- $ 835,848.