AssessmentInvestigate and discuss the importance of review and evaluation of financial performance planning monitoring.Assessment descriptionThis assessment requires candidates to answer the questions to demonstrate their knowledge and skills in regards to the effectiveness of financial management processes.Procedure1. Read the budgeted figures and complete the table.2. Look for any outstanding variances and list possible reasons and preventive measures you would take.3. Look at different scenarios and at the processes involved.4. Complete an evaluation grid looking at improvements to processes.5. Complete the short answer questions.Specifications relevant skills are identified a demonstrated understanding of specific and transferable skills specific development opportunities are suggested.Case studyBelow are the 2008 budgeted cash flow figures from the Jolimont accountancy firm, as was the example in the workbook. Can you use the figures from the income statement below, to complete the actual figures for Jolimont accountancy firm for 2008? Look at where the cash for the company has come from and explain if this is a sustainable cash resource for the business. List any outstanding variances for the business and possibilities for the variances. What corrective measures would you put in place to help control these costs in the future?

The below table requires full completion. In the first part new actuals need to be calculated based on your recommendations of decreasing expenses.The first 2008 column is the actuals and the second column is the predicted budget, the third is the variance that you calculate act-bud = variance

AccountDebitCredit

Cash flows from operating activity

Collections form debtors180,000

Collections from cash sales170,000

Interest received2,300

Payments to creditors139,000

Wages and salaries21,000

Interest expense10,900

Other operating expenses paid48,120

Income tax paid39,984

Total cash flow from operating activity93,296

Cash flow from investing18,000

Purchase of shares in Singhs Ltd

Total cash flow from investing activity

Cash flows from financing21,000

Proceeds from call on shares180,000

Loan from Abbotsford Mortgage Co.23,000

Loan repayments41,000

Dividends paid16,000

GST collected14,000

GST paid2,000

ATO GST settlement (refund)137,000

Total cash flow from financing activities212,296

Net change in cash flows559,220

Opening bank balance771,516

Closing bank balance

1. Explain if the source of cash sustainable, and list any outstanding variances you have noticed below: 3-4 variances required.

2. Now in the space provided, list the corrective measures you would implement and why:

Corrective measure 1:

Corrective measure 2:

Corrective measure 3:

Corrective measure 4:Write down what processes and data you would analyse when looking at the following scenarios and write down any improvements you could include to ensure that the problem would be less likely to occur in the future. Using these improvements, complete the evaluation grid below. 1. An employee who has been paid too much annual leave:

2. A large tax liability owed to the ATO:

3. An inflated budgeted expense account:

4. A sales representatives overpaid bonus:

5. A large bank overdraft:

6. A trial balance that does not balance:

7. Overstated bad debts allowance:

8. Understated accounts payable:

Using the above improvements complete the evaluation grid all sections (reformat table if required to fill in)