Sample Thesis Paper

Background to the Context

Various analytical procedures have been adopted by accountants to determine the financial aspects of a business. These analytical procedures are mainly aimed at providing comparisons between the actual amounts and the expectations of a business or its stakeholders. Financial information reported by companies is subject to scrutiny by auditors who employ certain analytical procedures to identify areas which may contain misstatements or errors or omissions. While the management use analytical procedures for various purposes. These could include preparing forecasts & plans and evaluating efficiency & effectiveness of its operations and human capital.

The current study will focus on the ratio analysis that is commonly used as a measure of success or failure of a business. Ratio analysis either through cross sectional or time series approach  (Colbert 1994) provides hindsight of the financial position of the company which could be of great interest for those who are managing business or planning to invest in the company. Comparisons between companies within an industry or over the period assist companies to develop their strategic, operational and tactical plans which could be seen as an important analytical tool. Its implications on the financial decisions are variable and are of great importance for those who have interest in the company’s financial position. The ratio analysis where either take form of as an integral part of financial statements or as a separate analytical report which companies or independent researchers from time to time develop.

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