Online Assignment is a leading provider of homework help to students worldwide. We offer complete educational solutions for all students from K-12, college, graduation, university level and professional courses. You can submit your homework and questions to Online Assignment and get speedy and cost effective solutions to your assignments. We provide 100% satisfaction guarantee with a commitment to complete your work within time. Combined with our rigorous work ethics and extensive domain experience, we are the ideal partner for all your assignments/homework needs. We assist you with Homework Help, Assignment Help, Dissertation Help , Essay Help , Project Help, Online Tutoring , Thesis Help, Term Paper Help , freely accessible solution library and a lot more.

1. Relationship between a Case Analysis and Financial
Analysis
A case analysis is a detailed evaluation and assessment of a
particular group, field or person. It involves an intense study,
collection and measurement of variable relating to the subject
matter. For a business, a case analysis shows the previous trends
of activities and events of a business for the past years and how
they influence its current position. The aim of a case analysis is to
determine how the identified variables influence the
characteristics of the business under study.
Financial analysis on the other hand is the quantitative study and
analysis of an organization’s financial performance. This is done
through studying the financial statements which shows the
current condition as well as the prospect of the company. The
general objective of financial analysis is making decisions
concerning the direction of the company. Specific aims may be to
make investment decisions, determine current market trends and
determining cash generating abilities.
Case analysis deals with general aspects of the company and thus
touches on virtually every area of the same. The information from
case analysis is linked to results of financial analysis to make more
informed decisions. A case analysis will mostly involve the
qualitative as well as quantitative elements of a business.
Financial analysis is used in case analysis to determine the
quantitative elements.
Value of financial statements to a case study
Generally a case analysis will apply financial statements to get
information about the various financial decisions of management
and their impacts. The contributions of the main financial
statements to a case analysis are as follows;

2. Balance sheet;
A balance sheet shows the position of a company at that particular
time in terms of company’s assets, liabilities and shareholder’s
equity.
When carrying out a case analysis, it is advisable to perform a
SWOT analysis of the company/business under study. This will
help to identify the strengths weaknesses opportunities and the
threats a company is faced with. A balance sheet may show the
strength in terms of assets a company possesses, weakness in
terms of debts, opportunities in terms of assets available to for
loans or threats in terms of excess money owed to creditors.
Profit and loss (Income) statement
This shows the income generated through the activities that a
business is involved in. it shows the revenues, cost of the revenue
generating goods/services and the expenses incurred.
Through a case analysis, one is able to know the nature of external
macro-environment and its effects to a company performance.
Such information can be drawn from profit and loss account by
checking such items as cost of goods sold and the expenses. This
gives a picture of the cost of items in the market and other
external trends.
Calculation of financial statements;
The following pro formas are used in preparation of main
financial statements;
Trading Profit and loss account for the year ended XXX
$ $ $
Sales
XXX
Less: Cost of Goods sold-opening stock XXX
Add purchases XXX XXX
Less: closing stock (XXX) (XXX)
Gross
profit XXX

3. Less: expenses
Expense 1 XXX
Expense 2 XXX XXX
Net profit
XXX
Balance sheet as at XXX
$ $ $
Fixed assets cost accumulated Net book value
depreciation
Fixed asset xxx (xxx) xxx
Fixed asset 2 xxx (xxx) xxx
Current assets
Current asset 1 xxx
Current asset 2 xxx xxx
Current liabilities
Current liability 1 xxx
Current liability 2 xxx (xxx) xxx
Net total assets xxx
Capital
Opening balance xxx
Add net profit xxx xxx
Less drawings (xxx) xxx
Advantages of a strategic Audit
A strategic audit is done to measure the qualitative and
quantitative aspects of a firm’s past performance and henceforth
base the information in strategic decision making.
Strategic auditing has the following advantages;
Quality Decisions

4. It leads to a strong conceptual understanding of the decisions
which led to a company being where it is. This will help the top
management realize the “success decisions” as well as the “failure
decisions” of the past and thus reapply or reject those previous
decisions.
Evaluate the Internal Controls
Strategic auditing will enable the business to assess and evaluate
its various internal controls. Part of the strategic audit process is
evaluating the value-addition of various processes to the company
as a whole. The internal controls are put in place to check and
balance these processes. Thus, through strategic auditing, the
effectiveness of the controls is measured.
Ensure a strong Portfolio
Strategic auditing focuses the management’s attention to the
business units as well as markets which are worth investing into.
A balanced portfolio is achieved when management capitalize on
attractive markets and also wise application of investments from
those markets to their various business units.
Risk minimization
Businesses undertaking a strategic audit are better shielded
against risks associated with uninformed decisions. This is
because the audit results include recommendations on what
direction to take regarding various processes or undertakings.
The following are some of the needs which are addressed by
strategic audit on a business;
Informed decisions
Information has become a very paramount feature in decision
making. The decision maker has to know what is happening
within the business and also the surrounding environment. He
also needs to assess the relationship of these variables before
making decisions. Strategic audit offers such information.

5. Shareholder’s demands
One of business shareholders’ needs is wealth maximization on
their investments. They need to be confident that their
investments are applied to right sources and activities. Strategic
auditing offers information as well as checks on investments and
thus minimizing losses that may be incurred though arbitrary
investing procedures.
Independent establishment of the state of affairs
Any audit process should be tailored in such a way that all the
information gathered and presented is objective. To ensure true
and fair views of a company’s affairs are presented, audit controls
are put in place to counteract subjectivity. Strategic auditing
therefore ensures independence of the information gathered and
thus it is enhances reliability of the results.
There is a need for a company to be carrying out a
strategic audit on a continuous basis. This is because;
1. Continuous strategic auditing ensures that every information
used for making decision is timely, sufficient and reliable. This
ultimately leads to quality decision making.
2. There would be an improvement in reporting in terms of the
timeliness. Continuous auditing provides the management
with real-time information and thus improves on the flexibility
in decisions and reporting effects of those decisions.
3. It will help the company to take advantage of opportunities as
they arise and also take precautionary measures against
looming threats to the company.
Strategic audit effectiveness
The effectiveness of a strategic audit is pegged on its
independence. An auditing team should not have any member
who is in any way related to the client (the person or organization)
being audited. This helps attaining the integrity of the information
gathered and disbursed.

6. A strategic audit provides the following;
Identifies the current strategy applied on the business and
evaluates its effectiveness.
It provides information on the external environment and the
threats and opportunities in presents to the company.
It enable a company to identify and assess its capabilities e.g. in
terms of competitiveness in the market.
It provides the business with financial indicators and ultimately
the financial direction to take.
Relationship Between a Case Analysis and Financial
Analysis
A case analysis is a detailed evaluation and assessment of a
particular group, field or person. It involves an intense study,
collection and measurement of variable relating to the subject
matter. For a business, a case analysis shows the previous trends
of activities and events of a business for the past years and how
they influence its current position. The aim of a case analysis is to
determine how the identified variables influence the
characteristics of the business under study.
Financial analysis on the other hand is the quantitative study and
analysis of an organization’s financial performance. This is done
through studying the financial statements which shows the
current condition as well as the prospect of the company. The
general objective of financial analysis is making decisions
concerning the direction of the company. Specific aims may be to
make investment decisions, determine current market trends and
determining cash generating abilities.
Case analysis deals with general aspects of the company and thus
touches on virtually every area of the same. The information from
case analysis is linked to results of financial analysis to make more
informed decisions. A case analysis will mostly involve the
qualitative as well as quantitative elements of a business.

7. Financial analysis is used in case analysis to determine the
quantitative elements.
Value of financial statements to a case study
Generally a case analysis will apply financial statements to get
information about the various financial decisions of management
and their impacts. The contributions of the main financial
statements to a case analysis are as follows;
Balance sheet;
A balance sheet shows the position of a company at that particular
time in terms of company’s assets, liabilities and shareholder’s
equity.
When carrying out a case analysis, it is advisable to perform a
SWOT analysis of the company/business under study. This will
help to identify the strengths weaknesses opportunities and the
threats a company is faced with. A balance sheet may show the
strength in terms of assets a company possesses, weakness in
terms of debts, opportunities in terms of assets available to for
loans or threats in terms of excess money owed to creditors.
Profit and loss (Income) statement
This shows the income generated through the activities that a
business is involved in. it shows the revenues, cost of the revenue
generating goods/services and the expenses incurred.
Through a case analysis, one is able to know the nature of external
macro-environment and its effects to a company performance.
Such information can be drawn from profit and loss account by
checking such items as cost of goods sold and the expenses. This
gives a picture of the cost of items in the market and other
external trends.
Calculation of financial statements;
The following pro formas are used in preparation of main
financial statements;

8. Trading Profit and loss account for the year ended XXX
$ $ $
Sales
XXX
Less: Cost of Goods sold-opening stock XXX
Add purchases XXX XXX
Less: closing stock (XXX) (XXX)
Gross
profit XXX
Less: expenses
Expense 1 XXX
Expense 2 XXX XXX
Net profit
XXX
Balance sheet as at XXX
$ $ $
Fixed assets cost accumulated Net book value
depreciation
Fixed asset xxx (xxx) xxx
Fixed asset 2 xxx (xxx) xxx
Current assets
Current asset 1 xxx
Current asset 2 xxx xxx
Current liabilities
Current liability 1 xxx
Current liability 2 xxx (xxx) xxx
Net total assets xxx
Capital
Opening balance xxx
Add net profit xxx xxx

9. Less drawings (xxx) xxx
Advantages of a strategic Audit
A strategic audit is done to measure the qualitative and
quantitative aspects of a firm’s past performance and henceforth
base the information in strategic decision making.
Strategic auditing has the following advantages;
Quality Decisions
It leads to a strong conceptual understanding of the decisions
which led to a company being where it is. This will help the top
management realize the “success decisions” as well as the “failure
decisions” of the past and thus reapply or reject those previous
decisions.
Evaluate the Internal Controls
Strategic auditing will enable the business to assess and evaluate
its various internal controls. Part of the strategic audit process is
evaluating the value-addition of various processes to the company
as a whole. The internal controls are put in place to check and
balance these processes. Thus, through strategic auditing, the
effectiveness of the controls is measured.
Ensure a strong Portfolio
Strategic auditing focuses the management’s attention to the
business units as well as markets which are worth investing into.
A balanced portfolio is achieved when management capitalize on
attractive markets and also wise application of investments from
those markets to their various business units.
Risk minimization
Businesses undertaking a strategic audit are better shielded
against risks associated with uninformed decisions. This is
because the audit results include recommendations on what
direction to take regarding various processes or undertakings.

10. The following are some of the needs which are addressed by
strategic audit on a business;
Informed decisions
Information has become a very paramount feature in decision
making. The decision maker has to know what is happening
within the business and also the surrounding environment. He
also needs to assess the relationship of these variables before
making decisions. Strategic audit offers such information.
Shareholder’s demands
One of business shareholders’ needs is wealth maximization on
their investments. They need to be confident that their
investments are applied to right sources and activities. Strategic
auditing offers information as well as checks on investments and
thus minimizing losses that may be incurred though arbitrary
investing procedures.
Independent establishment of the state of affairs
Any audit process should be tailored in such a way that all the
information gathered and presented is objective. To ensure true
and fair views of a company’s affairs are presented, audit controls
are put in place to counteract subjectivity. Strategic auditing
therefore ensures independence of the information gathered and
thus it is enhances reliability of the results.
There is a need for a company to be carrying out a
strategic audit on a continuous basis. This is because;
1. Continuous strategic auditing ensures that every information
used for making decision is timely, sufficient and reliable. This
ultimately leads to quality decision making.
2. There would be an improvement in reporting in terms of the
timeliness. Continuous auditing provides the management
with real-time information and thus improves on the flexibility
in decisions and reporting effects of those decisions.

11. 3. It will help the company to take advantage of opportunities as
they arise and also take precautionary measures against
looming threats to the company.
Strategic audit effectiveness
The effectiveness of a strategic audit is pegged on its
independence. An auditing team should not have any member ho
is in any way related to the client (the person or organization)
being audited. This helps attaining the integrity of the information
gathered and disbursed.
A strategic audit provides the following;
Identifies the current strategy applied on the business and
evaluates its effectiveness.
It provides information on the external environment and the
threats and opportunities in presents to the company.
It enable a company to identify and assess its capabilities e.g. in
terms of competitiveness in the market.
It provides the business with financial indicators and ultimately
the financial direction to take.

12. Online Assignment – Your Homework Help
Partner
Mail: homework@onlineassignment.net
Website: www.onlineassignment.net
Live Chat: Available 24*7