Assignment: Principals Of Finance "Cash Flow; Financial Planning"
Two part assignment. Prompt 1 and Prompt 2.
Answer each beginning with the corresponding prompt number.
Write at least 200 words for each prompt
• Identify the source of all information that you use
Prompt #1 - Discuss the simplified procedures used to prepare and evaluate the pro forma income statement and the pro forma balance sheet. What ethical issues do you believe are present in these procedures and how does the SOX Act address these concerns? In your response, you should also discuss the judgmental approach.
Prompt #2 - Simplified approaches for preparing pro forma statements assume that the firm's past financial condition is an accurate indicator of the future. There are several examples from the past where organizations were not accurately reporting their financial information. Discuss the relationship between the external auditor and the organization. What steps have been taken to ensure that the relationship is truly neutral and no bias is shown by the external auditing firm?
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.