.11 AT&T 5:49 PM 21% a instructure-uploads.s3.amazon C HINTS for IAPC Assignment 2 h this assignment, you will be doing the prel minary analytical review of Oceanview Marine including dentification of accounts with unusual fluctuatiom)and documenting concems tht you miht have been raised at the required brainstorming session Workpaper 2-1& 2-2 Doing the math on workpaper 2-1 should be straightforward. The tricky part is understanding what the ratios mean and whether they would be of concerm to the auditor You want to be looking at two things .. The change from the prior year 2. How Oceanview compares to industry averages Your analysis goes on 2-2 You need to ideneify at least one ratio or trend in each of the h categories that either indicates good financial health or might indicate problems Explain wy you and what it means. Workpaper 2-3 A and B are a bit of a repeat e Workpaper 2-2 but with a new twist Here you need to idently ratios and trends, if any, that give you concerns about the ability of Oceanview to stay in business for the next two years OR that indicate that Oceanview is financially stable enough to stay nbusness C and D are fairly straightforward Workpaper 24-a This sheet requires clear thinking and some detective work. You're asked to identity two balance sheet accounts and three income statement accounts that you think would most lkely bemuterialy misstated. You don't have any evidence yet. Youre just identifying areas you think should be looked at more dlosely. The following suggestions might help 1 Look at unusual changes in account balances from last year to the curment year 2 Look at relationships between accounts. Do they make sense? For eample,an increase in Property, Plant, and Equipment would normally result in an increase in Degreciation egense An increase in Salaries expense would mormally resuit in an increase in Sallaries payable