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Information Technology

Information Technology

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Answer the following question based on the information presented for Cloud 9 in the appendix to this case study.
(a) Using the 30 September 2011 trial balance (appendix to this case study) calculate planning materiality and include the justification for the basis that you have used for your calculation. (10 marks).
Part 2- Analytical Procedures
Required
Answer the following questions based on the information presented for Cloud 9 in the appendix to case study.
(a) Using analytical procedures and the information provided in the appendix, perform an analysis of Cloud 9’s financial position and its business risks. Discuss the ratios indicating a significant or an unexpected fluctuation. (10 marks). (b) Prepare a common-size statement for the balance sheet of Cloud 9, use total assets as the basis for the balance sheet. Comment on any audit implications revealed by your statement. (10 marks).

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