This is on Financial Statement (FS) Analysis: Cite 1 or 2 instances wherein anomalies or mistakes could be made in FS of a property management company? Then, please analyze interconnections between related items on (e.g. depreciation is related to the fixed assets like building, etc). the Balance Sheet (B/S) and Income Statement (I/S) as well as within the I/S as to provide insights and make recommendations. When using interconnections, you use 2-3 tools such as ratio analysis, component /common size, variance analysis and trend analysis, etc. to ensure accuracy of the FS.

-- Here is an example of FS analysis as guide: The company has been incurring losses. The accountant found out in the I/S that fuel and repair expenses have been increasing, despite the fleet of vehicles being new. This was "unusual" so he started exporting transactions in the logistics department for the previous 6 months and compared the ratios, variances each month. He found out that in the most recent 3 months the expenses increased substantially, however the vehicles are new which is why it is unusual to have increased fuel and repairs expenses. He looked at the budgeted fuel and repairs costs vs actuals (variances between expenses vs KMs driven), and it was increasing, but the trucks are not being driven more. So he looked at logistics sales since fuel expenses are related(interconnected to it -- more sales means more fuel expenses). However, there was no increase in logistic sales, it was consistent with previous month's actuals. So he suspect it could be inflation and downloaded recent gas prices, but it seemed consistent with what is expected. So he further checked the vendors that the logistics department has been using. He found the culprit at last by looking at one branch. He found that the branch manager is related to the vendor and have been overpaying for repairs due to close ties.