Comparison and Ratio Analysis of Magellan Fin Group Limited

Running head: AUDITING
Auditing
Name of student:
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Authors’ note

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Executive summary:
This report is particularly presenting the simple comparison and ratio analysis of Magellan
Fin Group Limited, a financial corporation for the purpose of evaluating company’s
performance. It is also representing the influences that effecting through the analysis of
companies performances. Next to this report is mentioning the material misstatements
relating to companies audit risks through the analysis of company’s annual report. After this,
the report is presenting some inherent risks at the assertion level in case to evaluate overall
performance of the company.

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Table of Contents
Requirement 1:...........................................................................................................................5
Analysis of different accounting balances and Ratios in current year:..................................5
Conclusion:..........................................................................................................................11
Requirement 2:.........................................................................................................................12
Risk relating to material misstatement (Inherent Risk) according to Magellan Fin Group
Limited’s financial report level:...........................................................................................12
Conclusions:.........................................................................................................................15
Requirement 3:.........................................................................................................................16
Risk relating to material misstatement (Inherent Risk) according to Magellan Fin Group
Limited’s Assertion level:....................................................................................................16
Conclusion:..........................................................................................................................19
References:...............................................................................................................................20

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Requirement 1:
Analysis of different accounting balances and Ratios in current year:
Generally, two different procedures are used in the case of analysing the financial
statement of Magellan Fin Group Limited. One is the using of simple comparison, between
the balances of three years revenues, expenses, net profit, assets balance, current liabilities
and amount of equity and the second one is using through the ratio analysis of three different
years(Home - Magellan Financial Group, 2019).
Simple Comparisons:
Revenues:
Figure 1: Revenues for the year 2016, 2017 & 2018.
Interpretation: The Company’s revenue incomes comparing with the previous years are
following the increasing trend in the present situation. In the year 2016 it was $333805, in