Critiqued Financial Statements

CRITIQUE ON

PARS MARKETING CORPORATION

FINANCIAL STATEMENTS

Presented to:

Mr. Melchor Q. Bombeo

In Partial Fulfillment of the

Requirements in

ACC 105 – Financial Accounting and Reporting III

by

Isabelo D. Machite, Jr.

BSA-III

October 2013

Financial Statements are used by the business as a tool to communicate to the owner or the management and various users for economic decisions. Financial statements serve as a “bridge for communication”. Because of this, financial statements should possess all the required qualitative characteristics to be more useful in decision making not only for the management but also for the various users who are interested in the activities of an entity. Financial statements should be fairly prepared and presented so that it can be understood by the users. It must be free from material error, and free from bias.

In order to have this financial statement totally reliable and free from error, conducting a critique on the data, bases, principles, assumptions and practices instituted by the management would be very vital. There is a need for this in order to test the correctness of the financial reports, whether they conform on Full PFRS, PFRS for SMEs or other accounting standards or not. Committing mistakes is inevitable when it comes in preparing and presenting the financial reports. This is not made to test the credibility and integrity of the auditor. Thus, critiquing is very essential on this matter. This will eventually help to facilitate the analysis and understanding of the comparative data that would contribute to more useful information for the economic decisions of the qualified users. But before we are going to critique the financial statements, first, we should have to be accustomed with the Corporation that we are going to evaluate.

Pars Marketing Corporation is a dealer or wholesaler of printing materials, machinery equipment and other related...