Importance of Financial analysts

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• Could problems at Enron have been uncovered earlier?

  Many analysts place more importance on the income statement than they do on the statement of cash flows.

• Pro-forma financial statements and financial planning

  Another instance for the use of pro-forma statements could be when a merger or some sort of transformation is in the works. Financial analysts and planners read pro-forma financial information with great interest.

• Annual Reporting.

  When evaluating performance, analysts and investors look at how managers use both the financial reports and the non-financial metrics to make their operating and investment decisions (Hutton, 2001).

• Explain importance of US GAAP, ISFR and liquidity

  Stakeholders may include shareholders, bankers, lenders, investors, financial analysts, potential buyers and sellers of stock or of companies, and anyone else who has an interest in a company with a published financial statement.

• Analysis of credit worthiness

  It is advisable to use multiple factors as a basis for evaluating the financial health and credit worthiness of organization because such comprehensive analysis allows analysts to cover multiple risks areas affecting the organization.

• Information Service (IS) & Technology (IT)

  Assess the importance of quality organizational data (e.g., documentation, user training manual, policies, and feedback). 2.

• Sarbanes Oxley Act and Auditor Regulations

  of their company financial reports quarterly).

• Roles, expenditures, and revenue for the federal state

  The importance of informed financial decisions are examined.

• liquidity ratio

  Liquidity ratios are a class of financial metrics that is used to determine a company's ability to pay off its short-terms debts obligations.