Uncover hidden risks, spot profitable opportunities, and transform complex financial data into confident, strategic business decisions.
The terms "financial report" and "financial statement" are often used interchangeably, though they bear distinct meanings. Financial reports, functioning as a comprehensive umbrella term, encompass various report types. These reports, disseminated to both management and stakeholders, play a crucial role in conveying essential information about the organization's financial well-being. Typically, they include vital financial statements such as the balance sheet, income statement, and statement of cash flow. It's essential to note that while all financial statements are financial reports, not all financial reports qualify as financial statements.
Within the expansive scope of financial reports, financial statements emerge as a focused subset. These statements furnish specific details about an organization's financial standing, encompassing assets, liabilities, shareholder equity, cash flow, and operational results. Presented in a structured table format, they often reference footnotes to elucidate specific details.
Financial analysis, known by various terms like financial statement analysis, accounting analysis, or analysis of finance, entails evaluating the viability, stability, and profitability of an organization, business, or even a specific segment of the business or project.
Professionals may use various financial ratios to compare and analyze information incorporating the various financial statements. Ratios are important to assist in understanding the organization's activities; however, it is critical to understand that ratios do not necessarily tell the whole story. Some ratios taken in isolation may not provide a complete story of an organization's performance, status, or efficiency. Often, an individual ratio is of more use when evaluated in line with other ratios or trend information. In any event, for ratios to be useful and meaningful, they must be:
• Calculated using reliable, accurate financial information
• Calculated consistently from period to period
• Used in comparison to internal benchmarks
• Used in comparison to other companies in your industry
• Viewed both at a single point in time and as an indication of broad trends and issues over time
• Carefully interpreted in the proper context, considering there are many other important factors and indicators involved in assessing performance
Lynn Fountain has over 45 years of experience spanning public accounting, corporate accounting and consulting. 24 years of her experience has been working in the areas of internal and external auditing. She is a subject matter expert in multiple fields including internal audit, ethics, fraud evaluations, Sarbanes-Oxley, enterprise risk management, governance, financial management and compliance. Ms. Fountain has held two Chief Audit Executive positions for international companies. In 2011, as the Chief Audit Executive for an international construction/ engineering firm, she was involved in the active investigation of a joint venture fraud. The investigation included work with the FBI and ultimately led to indictment of the perpetrators and recovery of $13M. Ms. Fountain is currently engaged in her own training and consulting business and is a regular trainer for the AICPA. Ms. Fountain is the author of three separate technical books. “Raise the Red Flag – The Internal Auditors Guide to Fraud Evaluations” was published by the Institute of Internal Auditors Research Foundation. -“Leading The Internal Audit Function” and -“Ethics and The Internal Auditor Political Dilemma” were published by Taylor & Francis In addition Ms. Fountain was a contributing author to the certification program exam for the National Association of Accountants. She also has certificate programs on various on-line platforms. Ms. Fountain has performed as an adjunct instructor for the School of Business for Grantham University and developed the first internal audit curriculum for the School of Business at the University of Kansas. Ms. Fountain obtained her BSBA from Pittsburg State University and her MBA from Washburn University in Kansas. She has her CGMA, CRMA credentials and CPA certificate (non-active).
Provincial regulators of CPAs in Canada do not require that independent providers of CPD be approved to offer courses. Instead, individual CPAs are responsible for assessing whether a CPD activity meets their requirements, and may take activities from any source provided those requirements are met.
Every course offered on LearnFormula is delivered by a qualified subject matter expert or learning organization, and advances learning objectives that are relevant to the responsibilities or professional competencies of Canadian CPAs. All activities on LearnFormula are quantifiable in terms of hours, and are also verifiable, in that users receive documented evidence of their attendance via a certificate of completion after finishing a course (and this certificate is stored by LearnFormula indefinitely). Nearly 100,000 Canadian CPAs successfully satisfy their CPD requirements via LearnFormula on an annual basis.
