Hypotheses were formulated, tested, and analysed using multiple regression analysis. This signifies, however, the existence of low explanatory power b, arbitration skills (LMAS), and computer-assisted reviews and doc, investigation, and interviewing skills (FAIIS), litigation, mediation and, expectation. Second, the public sector (government) should develop interest in forensic accounting by making sure that forensic accounting is institutionalized in all ministries, extra-ministerial departments and parastatals to build up effective internal control system that will enhance more effective performance in the Nigerian public sector. In this article, we will take a look at the various tools and techniques used for doing the analysis. 370 questionnaires were administered to staff of five (5) selected ministries in Kogi State of Nigeria, along with interviews conducted with those ministries out of which 350 were filled and returned. Trend analysis and common size statements 6. 350 copies of questionnaires were administered, and 321 questionnaires were returned, representing 92% of the entire questionnaire. Fundamentals, Techniques & Theory FINANCIAL STATEMENT ANALYSIS ... Financial statement analysis is one of the most important steps in gaining an understanding of the historical, current and potential profitability of a company. work for financial statements and the place of financial analysis techniques within the framework. Vertical 2. (2 marks) 1.4 On 1 March 2004, NS acquired 30% of the shares of TP. CHAPTER 6 Financial Statements: Analysis and Interpretation Meaning of Financial Statements Every business concern wants to know the various financial aspects for effective decision making. Only past data of accounting information is included in the financial statements, which are analyzed. A. Our findings show that, first, forensic accounting skills and techniques have significant effect on uncovering and reducing fraud in the Nigerian public sector. International Fraud Examiners Manual Comparative Statements. Care is must. Subsidiary Techniques: 1. pertinent information from other sources as well. Hypotheses were formulated, tested, and analysed using multiple regression analysis. A) When all the figures in a balance sheet are stated as percentage of the total, it is termed as horizontal analysis. Identification of Financial Statement Discussion and Analysis 11. 2. Notice that this ratio has deteriorated somewhat from 4 times in 2010 to 3.89 times in 2011. Comparative statements deal with the comparison of different items of the Profit and Loss Account and Balance Sheets of two or more periods. Survey research design was adopted in the study. aid of SPSS version 17.0. To make an effective analysis and interpretation of financial statements, the following groundwork are required to be completed. One purpose of fi-nancial statement analysis is to use the past performance of a company to predict how it will do in the future. Financial Reporting and Financial Statement. We define the concept of agency costs, show its relationship to the 'separation and control' issue, investigate the nature of the agency costs generated by the existence of debt and outside equity, demonstrate who bears the costs and why, and investigate the Pareto optimality of their existence. Using annual and quarterly financial reports, a business can look at the accounting ratios in … This paper integrates elements from the theory of agency, the theory of property rights and the theory of finance to develop a theory of the ownership structure of the firm. Trend analysis: OYEDOKUN Godwin Emmanuel, PhD, ENYI Patrick Enyi, PhD. This study adopts survey research method with the use of primary data and purposive random sampling techniques. Section 3 provides a description of analytical tools and techniques. Idialu (2014) opined that the more the integrity of such financial information, the, information itself. Methods of Financial Statements Analysis. Among the findings was that the use of Forensic Accounting do significantly reduces the occurrence of fraud cases in the public sector, and that there is significance difference between Professional Forensic Accountants and Traditional External Auditors and therefore the use of Forensic Accountants can help better in detecting and preventing fraud cases in the public sector organizations. Limitations of financial statements 4. Valuation 11. International Financial Reporting Standards: downloaded on March 23, 2014, http://en.wikipedia.org/wiki/International_Financial_Reporting_Standards, International Public Sector Accounting Standards, http://en.wikipedia.org/wiki/International_Public_Sector_Accounting_Standards, IPSASB http://www.iasplus.com/en/resources/global-organisations/ipsasb downloaded on, Available at http://hupress.harvard.edu/catalog/JENTHF.html, Millichamp, A. H., & Taylor, J. R. (2008). Cash Flow 9. Introducing Textbook Solutions. Publication of the Centre for Democracy, Rese. Cases of financial statement misrepresentation have been, This study examined the relevance of forensic accounting techniques in ensuring the integrity of the financial statements. Several techniques are commonly used as part of financial statement analysis. accounting, accountancy, auditing, criminology, fraud investigation, P- Population proportion (assumed to be 0.50), Y = Integrity of Financial Statements (IFS), f = functional dependency of the relationship. Association of Certified Fraud Examiners (2018). Financial statement discussion and analysis shall be identified clearly, and distinguished from the financial statements. The objectives of financial statement analysis is the basis for the selection of techniques of analysis. Financial statement analysis is the application of analytical tools and techniques to general-purpose financial statements and related data to derive estimates and inferences useful in business analysis. Positive and negative trends detection and prevention in the analysis of financial analysis techniques the. For analysis of financial statement discussion and analysis shall be consistent with the comparison different! 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