Breast Cancer Characteristics And Survival Differences Essay

Question:

Discuss about the Breast Cancer Characteristics And Survival Differences.

Answer:

Introduction:

In the present report, an effort has been made towards developing an understanding of the financial performance and the financial positon of the company. The understanding regarding the financial positon and the performance of the company will be developed with the help of the financial statements that have been prepared and presented by the company. After the analysis of the financial statements of the company is carried out, the relevance of the various matters that have been stated out in it in respect of the materiality in the audit procedure to be conducted by the auditor will be ascertained (Australia and Australia 2015). The factors that were being considered for categorising a particular account as material will be discussed in detail. The material relevance of around 10 accounts will be computed and the materiality in respect of each FO the accounts will be determined objectively.

The company that has been selected for conducting the following presentation is Alice Queen Limited. The company has its listing on the Australian Stock Exchange. The company is engaged in the business of exploration and has the majority interest in two projects that are located in Torres Strait Queensland and Menorah copper (Redfern et al. 2014).

Nature of the entity:

Business operations:

The company is engaged in the activities that are concerned with the exploration and the extraction of the various minerals by the company. Some FO the most significant business projects that are presently held by the company and on which the activities have commenced are continuing are as follows:

  1. Horn Island:

For the present reporting period, the Group commenced its phase 2 Exploration program that is situated in the Horn Island. In pursuance of that, the entity embarked itself on an extensive geological mapping and sampling program that was conducted in the Horn Island (Harish et al. 2015). The main purpose of these activates was to determine the scope and the scale of the Horn Island Mineral Field and to significantly firm up the target in respect of the further drilling that were to be conducted by the company just outside the present area wherein the company is conducting its exploration activities.

  1. New South Wales(Looking Glass EL 8225):

In the month of October, the company announced that operations regarding the drilling have been commenced in respect of its Looking Glass project on the Moong Volcanic Belt of NSW (Gibberd et al. 2016). The drilling project of the company involves the drilling of two deep diamond core holes that are being respectively directed towards two different magnetic anomalies.

Investment and investment activities:

The constituents of the investing activities are as follows:

  1. Payments that are being made by the company in respect of the exploration evaluation expenditure: this item represents the amount that is paid by the company in respect of the various exploration that are being conducted by the company these are considered to be investing activities because the company has to incur all these for the purpose of generation of revenue in the future (Campbell et al. 2015).
  2. Property, plant and equipment:

This represents that amount that the company has to incur for the purpose of purchase of property plant and equipment that are going to be used by the company for carrying out its everyday activities.

  1. Payments for the security deposits:

This amount is being incurred by the company in respect of the various payments that are being made by the company in respect of the security deposits to different suppliers of the company.

  1. Cash and cash equivalent that have been acquired on acquisition:

This represents that amount that is present with the company as cash and cash equivalents that has been received by the company from the various acquisitions that have been made by the company.

Finance and the financing activities:

The finance activities are those activities that are concerned with the collection of the funds required by the company for carrying out its commercial activities. The finance activities that are conducted by the company are as follows:

  1. Proceeds from the issue of the shares:

This represents the amount that has been arranged by the company from the issue of the equity shares of the company to the equity shareholders of the company.

  1. Payments for share issue costs:

This represents that amount that has been paid by the company in respect of the shares that were being issued by it.

  1. Proceeds from the borrowings:

This represents the amount that has been arranged by the company from the third parties in the nature of loan, borrowed funds in respect of which the company will have to pay regular interest, and needs to repay back the amount that had been borrowed by the company (Clark et al. 2015).

Financial reporting practices:

The responsibility of the preparation and the presentation of the financial statement of the company have been assigned to the directors of the company. The financial statements that have been prepared by the entity for a specific period must be able to give out the true and fair view of the financial positon and the financial performance of the entity. The Australian Accounting standards and the conditions that are being specified in the corporation act 2001 must be adhered by the management of the company in preparing the financial statements because only then it will be possible for it to reflect the true and fair view of the company’s financial statements (Jackson et al. 2015). Proper internal control system must be put in place within the organisation for ensuring that the preparation of the financial statements of the company is done without any sort of difficulty like unavailability of the requisite information and the misstatement and errors that have been committed by the employees of the company. The group’s ability to continue as a going concern must be objectively analysed by the company.

Performance of Analytic procedures on the financial statement of the company:

For the purpose of

  1. Net Profit margin:

Net Profit Margin

2017

2016

2015

Net Profit

-1156172

-2238950

-245646

Sales

95622

7811

1185

Net Profit Margin

-1209%

-28664%

-20730%


It can be seen that the net profit margin earned by the company is hugely negative. The reason being that the company has not been able to generated positive profits for any of the year. However, the sales of the company are increasing over the periods. The huge negative figure is the result of the initial expenditure that is to be incurred by the company for exploration of the resources.

  1. Current ratio:

Current Ratio

2017

2016

2015

Current Assets

864130

1094896

68236

Current Liabilities

61648

601498

35877

Current Ratio

14.02

1.82

1.90


It can be seen that the current ratio of the company has increased significantly over the period of last three years. The amount recorded in 2107 is excessively high and denotes that the company is losing funds in respect of over investment in the working capital of the company.

  1. Return on Assets:

Return On Assets

2017

2016

2015

Net Profit

-1156172

-2238950

-245646

Total Assets

4835975

3007825

260243

Return On Assets

-0.24

-0.74

-0.94


The company has improved the return on assets as the negative returns generated by the company have reduced over the years. This means that the company is revenue-generating capability using its fixed assets.

  1. Debt Equity ratio:

Debt Equity Ratio

2017

2016

2015

Total Liabilities

616482

601498

35877

Shareholders’ equity

7866109

5078811

657900

Debt Equity Ratio

0.08

0.12

0.05


It can be seen that the debt equity ratio of the company has improved significantly over the period of three years as the value of the debt equity ratio has decreased. This has resulted in the improvement of the solvency position of the company.

Ascertainment of the materiality of the accounts of the company:

  1. Inventory:

This account has been considered to be among the significant one and be termed as material because of the fact that there are significant chances that the amount that has been recorded in the financial statement corresponding to this is incorrect and misleading (). The auditor of the company also needs to verify the method that has been adopted by the company for the purpose of valuation of the inventory of the company. The decision has to be taken regarding the fact that whether the provisions of the corporation act and the accounting standards were abided by the company.

  1. Receivables:

The item has been considered to hold material importance in the financial statement of the company due to the reason that it is the result of the primary revenue generating activities of the company. The pool of asset that is created in respect of this item is fully comprised of third parties that are not directly a part of the company. It is very doubtful on their part to make the full payment to the company in respect of the items that have been purchased by them from the company (Gormly et al. 2016). In addition to this, the validity of the time that has been selected by the company for the recognition of the amount corresponding to them has to be established too.

  1. Plant and equipment:

The plant and equipment of the company has been considered as a material item for the purpose of audit of the financial statements of the company because of the significant amount that is involved for their acquisition. There are also several considerations that are needed to be made in respect of their depreciation method and their respective revaluation as per the condition prevalent in the market.

  1. Trade and other payables:

This item is considered to be one of the material items for the purpose of audit of the financial statement of the company because of the fact that it is one of the significant transactions that is conducted by the company in its daily operations.

Cash and cash equivalents:

It is one of the most liquid assets that are held by the company. Due to its liquid nature, it is the most susceptible one in terms of theft and misrepresentation by the staff of the company.

  1. Investments:

This item is considered to be a material one because of its unpredictable nature and the subjectivity involved in the selection process of the management.

  1. Exploration and evaluation expenditure:

This is considered to be one of the most significant and material item because the company’s primary activity is concerned with the exploration of the minerals.

  1. Borrowings:

It is considered to be a material item by the auditor because of the fact that the legal obligations that are being made compulsorily applicable due to the borrowing of funds that is conducted by the company like the payment of interest at a fixed rate irrespective of the fact that whether the company has been able to generate net profits or not.

  1. Pre-payments:

These are considered to be material because the auditor of the company will have to verify extensively that whether the amount that has been recorded by the company as pre-payment is being written by the suppliers of the company as pre-received for the same period of time and with the same amount. There is a high risk present in this because of the fact that in case of lapse of proper communication and the relevant supporting documents error can be observed (Campbell et al. 2015).

  1. Security deposits:

This is considered to be material by the auditor of the company because of the fact that the amount involved in the security deposits of the company is significant and in case of improper communication and in case of huge change in the interest rates prevalent in the market there can be huge difference in the earning that is going to accrue towards the company.

Accounts

2017

2016

Financial report assertions

steps to be taken

Inventory Account

12045

12942

The assertion that is being made in respect of inventor is in respect of the valuation of the given item and the validity of the method that has been chosen by the management of the company in respect of the conducting its valuation.

The auditor needs to refer to the guidelines that have been issued by the Accounting standards of the country and the various information disclosed by the company in its respect will have to be analysed.

Receivables

56181

86546

The assertion to be made in this respect that the company must ensure that the revenue recognition policy that has been adopted by the company is able to objectively identify the pattern or the process of the revenue generation by the company.

A debtor-ageing schedule will have to be obtained from the management of the entity for the purpose of determining the amount that the company is going to receive in the future respectively from its debtors.

Plant and Equipment

27038

7127

The assertion that is being made in this case is the physical existence of the property, plant and equipment of the company. in addition to all that the auditor of the company will have to verify the method that has been chosen for depreciation of the company

Physical verification will be conducted to determine the physical existence of the company.

Trade and other payables

614850

166371

The assertion in this case is regarding the correctness of the amount that has been entered in the financial statement of the company.

Third party confirmation has to be obtained.

Cash and Cash Equivalent

805316

992246

The assertion in this respect is the amount that is recorded in respect of the physical cash present with the entity.

Bank reconciliation statement in respect of the company has to be maintained.

Investments

16000

15999

The assertion is being made in respect of the measurement of the investment based on the period for which it is desired to be held by the company

An investment schedule will have to be obtained from the company.

Exploration and expenditure

3875504

1856500

The assertion is made in respect of the capitalisation of the expenses incurred in this respect.

The statement of expenditure and statement of revenue will have to be prepared.

Borrowings

433771

The assertion is made in respect of the terms mentioned in the agreement in respect of interest to be paid

The interest schedule of the company has to be obtained from the management.

Pre-payments

2633

16104

The assertion is made in respect of maintenance of proper records in this respect

Reconciliation of the amount recorded by the supplier and the company has to be conducted.

Security deposits

53303

33303

The assertion is made for the amount that is being recorded in the

The statement containing the records of the security deposits made by the company must be maintained by it.

Conclusion:

The materiality of the items that are being presented in the financial statement of the company has to be ascertained for the purpose of determining the focus that has to be given in respect of each of the items of the financial statement. The company in the present scenario needs to increase its profitability immediately for ascertaining continued operations in the future.

Reference

Australia, I. and Australia, D.I., 2015. RE: Australian Infrastructure Audit.

Campbell, I., Scott, N., Seneviratne, S., Kollias, J., Walters, D., Taylor, C. and Roder, D., 2015. Breast cancer characteristics and survival differences between Maori, Pacific and other New Zealand women included in the quality audit program of breast surgeons of Australia and New Zealand. Asian Pac J Cancer Prev, 16(6), pp.2465-2472.

Clark, H., Orme, L., Super, L., Gillam, L., Stern, K., Agresta, A., Moore, P., Downie, P., Grover, S. and Jayasinghe, Y., 2015. Addressing fertility in female paediatric and adolescent patients receiving gonadotoxic therapy: audit of clinical practice at The Royal Children's Hospital, Melbourne. Bjog: An International Journal of Obstetrics and Gynaecology, 122, p.380.

Gibberd, A., Supramaniam, R., Dillon, A., Armstrong, B.K. and O’Connell, D.L., 2016. Lung cancer treatment and mortality for Aboriginal people in New South Wales, Australia: results from a population-based record linkage study and medical record audit. BMC cancer, 16(1), p.289.

Gormly, K.L., Coscia, C., Wells, T., Tebbutt, N., Harvey, J.A., Wilson, K., Schmoll, H.J., Price, T., Price, T., Hruby, G. and Jeffery, M., 2016. Mri rectal cancer in Australia and New Zealand: An audit from the Petacc?6 trial. Journal of medical imaging and radiation oncology, 60(5), pp.607-615.

Harish, V., Raymond, A.P., Issler, A.C., Lajevardi, S.S., Chang, L.Y., Maitz, P.K. and Kennedy, P., 2015. Accuracy of burn size estimation in patients transferred to adult Burn Units in Sydney, Australia: an audit of 698 patients. Burns, 41(1), pp.91-99.

Jackson, D., Atkin, K., Bettenay, F., Clark, J., Ditchfield, M.R., Grimm, J.E., Linke, R., Long, G., Onikul, E., Pereira, J. and Phillips, M., 2015. Paediatric CT dose: a multicentre audit of subspecialty practice in Australia and New Zealand. European radiology, 25(11), pp.3109-3122.

Redfern, J., Hyun, K., Chew, D.P., Astley, C., Chow, C., Aliprandi-Costa, B., Howell, T., Carr, B., Lintern, K., Ranasinghe, I. and Nallaiah, K., 2014. Prescription of secondary prevention medications, lifestyle advice, and referral to rehabilitation among acute coronary syndrome inpatients: results from a large prospective audit in Australia and New Zealand. Heart, pp.heartjnl-2013.

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