Retail
Connecting trading activity with the underlying records.
The financial context
Sales, stock movements, returns and margins may present different views of performance. Analysis can examine how those records reconcile and which assumptions influence a calculation.
Questions that shape the review
Do sales, stock and cash records reconcile?
Consider returns, cut-off and stock movements when comparing different views of trading.
Are the periods comparable?
Explain changes in margins, activity and the basis of any financial adjustments.
From information to an explanation
The work should connect the source material to the question being considered. Differences in definitions, periods or assumptions need to be made visible, together with the effect of any missing records.
The resulting explanation should distinguish what is documented, what depends on judgement and what remains uncertain. Its form and level of detail depend on the agreed purpose.
A question of suitability
The practice’s relevant experience, independence and the information available must be confirmed before any engagement. The purpose, scope and reporting requirements are agreed before analysis begins.
Discuss the financial question.
Start with the background, the relevant period and what you need to understand.
Discuss an enquiry