Financial Analysis: A Controller’s Guide
By Steven M. Bragg
Controllers and financial managers provide a wide array of accounting functions for corporations. The controller is responsible for areas such as processing payable and receivable transactions, handling the transfer of assets and closing the books. Financial analysis is a much needed skill for controllers to be truly successful. Steven Bragg, an accomplished author and former CFO or controller of four companies and an Ernst and Young consulting manager is well qualified to cover this subject. After a brief overview introduction and the role of financial analysis the author jumps right in with coverage for financial analysis and operational analysis. The financial analysis section covers evaluating capital investments, evaluating financing options, evaluating cash flow, acquisition targets, intangible asset measurement, breakeven analysis and business cycle forecasting. Auditors reviewing any of these areas will find the author’s coverage worthwhile for understanding the methodology utilized by management. In the operational section the author deals with analyzing process cycles, profitability analysis, and capacity utilization. There is also an appendix with commonly used ratios. Auditors at one time or another in their careers will evaluate one or more of these areas and would therefore find this book a useful resource for audit planning and fieldwork.
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