Vinand Petroleum Case

VINAND PETROLEUM CASE Financial statements could be examined with varied degrees, as persona of the client acceptance procedures Paige CPA got to perform a plane and vertical analysis, and fiscal ratio analysis of Vinand Petroleum financial statements. These procedures are non as in depth as other procedures used by auditors on financial statements, yet these procedures may show areas of concern for auditors. From 2006 to 2007, Vinands long terminus debt tripled and its interest expense paid for the year did not job this drastic augment. This could mean that Vinand has taken on a titanic amount of debt with a low interest rate, which will not bode well for the financial health of the company in the future. In the same breadth, papers payable account did not increase from 2006 to 2007 despite a substantial increase in the fund account. Revenue increased by a large bank in 2007, and the increase in the account receivable account was pale in comparison with sales, but even with some(prenominal) these developments the taxes payable account decreased. Other liabilities account usually denotes various liabilities which are usually immaterial, from 2006 to 2007 this account increased from $50,000,000 to $466,000,000, the cause of this suck increase has to be investigated.

Looking at Table 2 which gathers information of Oil and Gas companies from 2005 to 2007, Vinand consistently beats extinct the application average by astronomical margins except in the pass on on sales category where Vinand sits at the perseverance average. In one particular instance Vinand had a helping increase of 53.06% compared to its closest competitor which had an increase of 7.56% while the industry average was a decline of 12.75%. All these raise concerns as to how in an industry as volatile as the inunct and gas, how Vinand consistently overwhelmed industry expectations. For all its exceptional performance, Vinands return on sales ratio b rescripts right on the industry average. Paige CPA found... If you want to get a full essay, order it on our website: Ordercustompaper.com

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