i am doing group project this is i become fictional audit firm 640405

Aug 30, 2021 | Uncategorized

I am doing group project. This is I become fictional audit firm and I am planning auditing proposal and prcedure and program. i want to know How can I start it and How can I analysis with them. This is group project so, My part is income statement. they said to me analysis 2011 vs 2012 and then, find the risk and step forward for the analytic. I would like to get tutoring about what is step and how can I calculated and What procedure do I have to do. I am totally lost
Year ended December31, based on 2012 based on 2011
2013 2012 2011 2013 vs. 2012 2012 vs. 2011
Net revenue:
Software 68,897 54,705 39,870 $ 14,192 26% 14,835 37% You can even say that since revenue has been increasing every year, and I think there gross profit margin also, that could even be pretty risky also, and we would have to find out what is causing that change to make sure the numbers are being properly recorded. So just anything that stands out to you feel free to document, and share your results with Jackie cause we use both comparisons together to see what’s going on with the numbers.
Network connectivity 61,140 55,575 48,602 $ 5,565 10% 6,973 14%
Total net revenue 130,037 110,280 88,472 $ 19,757 18% 21,808 25%
Costs of revenue:
Software 28,012 22,134 16,940 $ 5,878 27% 5,194 31%
Network connectivity 39,365 37,642 35,637 $ 1,723 5% 2,005 6%
Total costs of revenue 67,377 59,776 52,577 $ 7,601 13% 7,199 14%
Gross profit 62,660 50,504 35,895 $ 12,156 24% 14,609 41%
gross margin 48% 46% 41% Although gross margin increased by 5%
Operating expenses:
Selling and marketing 37,220 28,591 24,563 $ 8,629 30% 4,028 16%
Research and development 12,605 9,401 6,354 $ 3,204 34% 3,047 48%
General and administrative 21,219 17,140 14,090 $ 4,079 24% 3,050 22%
Total operating expenses 71,044 55,132 45,007 $ 15,912 29% 10,125 22%
Loss from operations 8,384 4,628 9,112 $ (3,756) 81% 4,484 49%
Other income (expense):
Interest income 0 3 1 $ (3) 100% 2 200%
Interest expense 317 364 507 $ 47 13% 143 28%
Change in fair value of warrants 0 0 158 $ 0% 158 100%
Other expense 34 275 91 $ 241 88% 184 202%
Total other expense 351 636 755 $ 285 45% 119 16%
Loss before income taxes 8,735 5,264 9,867 $ (3,471) 66% 4,603 47%
Income tax expense 283 120 74 $ (163) 136% 46 62%
Net loss and comprehensive loss 9,018 5,384 9,941 $ (3,634) 67% 4,557 46%
Net loss per common share:
Basic and diluted 0.16 0.11 0.24 $ (0) 45% 0 54%
Weighted average common shares outstanding:
Basic and diluted 54,742 47,108 40,434 $ 7,634 16% 6,674 17%