COMMON SIZE ANALYSIS

Common-size income statements facilitate easy comparison. Not only can readers easily see how much of every dollar goes to rent, for example, they can compare that percentage to other companies or other periods in time. This allows analysts to compare companies of different sizes and not be "blinded" by the size differences inherent in the raw data.

sources: http://www.investinganswers.com/financial-dictionary/financial-statement-analysis/common-size-income-statement-5237

8 COSO Components

Nindita Rahmalaudina - C1L014037

1. Internal Environment

The internal environment sets the foundation for how risk is viewed and addressed by an entity’s people.

2. Objective-Setting

ERM ensures that management has in place a process to set objectives and that the chosen objectives support and align with the entity’s mission and are consistent with its risk appetite.

3. Event Identification

Internal and external events affecting the achievement of an entity’s objectives must be identified, distinguishing between risks and opportunities.

4. Risk Assessment

Risks are analyzed, considering likelihood and impact, as a basis for determining how they should be managed.

5. Risk Response

Management selects risk responses—avoiding, accepting, reducing or sharing risk—developing a set of actions to align risks with the entity’s risk tolerances and risk appetite.

6. Control Activities

Policies and procedures are established and implemented to help ensure the risk responses are effectively carried out.

7. Information and Communication

Relevant information is identified, captured and communicated in a form and timeframe that enable people to carry out their responsibilities.

8. Monitoring

Monitoring is accomplished through ongoing management activities, separate evaluations or both.

Sources: http://info.knowledgeleader.com/bid/163293/what-is-the-coso-enterprise-risk-management-framework

Analyzing Internal Control of Annual Report

Nindita Rahmalaudina - C1L014037

Group Member:

Wasis Yuda Yanti - C1L014013

Rizkia Vionanda - C1L014034

INDEPENDENT AUDITOR’S REPORT ON CONSOLIDATED FINANCIAL STATEMENT OF SAMSUNG ELECTRONICS CO., LTD.

Consolidated financial statement of Samsung Electronics Co., LTD. and its subsidiaries have been audited by independent auditor which comprise the consolidated statement of financial position as at December 31, 2016 and 2015, and the consolidated statement of profit or loss, consolidated statement of cash flows for years then ended, and the notes to the consolidated financial statement.

Base on independent auditor's report, we think that the management uses its internal control well because the preparation and fair presentation of the consolidated financial statement in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (“Korean IFRS”). Good internal control avoids material misstatement of the financial statements.

Implementation of internal control in a company is doing well because in those reports the auditors evaluated the appropriateness of accounting policies used and the reasonableness of accounting estimates made significant management and overall presentation of the consolidated financial statement and the audit evidence obtained is sufficient and appropriate. So there is no limitation from the management.

Auditing II - Internal Control

Nindita Rahmalaudina - C1L014037
1.What is internal control ?
2. Why in auditing we have to understand and examine the internal control of the entity?

          Internal control is a way that used by a management to make sure that the plan of an entity can goes well. It's necessary for an entity to have an internal control to manage their business circulation. Without internal control, the work of every division in a company can be complicated.

          When an auditor make an audit for a company, internal control can help when the auditor collect the data. Good internal control serve information neatly for sure. Internal control make their job easier than do audit in a company who's not implementing internal control. The auditor can evaluate the internal control of a company in audit process. Internal control also used for matched the company's performance with the audit result. Is the bad audit result caused by bad internal control of an organization or any factors?

          The auditor can give a suggestion for company's improvement even it's not write in auditor's opinion page.