Profit and Loss Account (Income Statement)

Revenue Recognition:

Accuracy and timeliness of revenue recognition.
Compliance with accounting standards (e.g. US GAAP).
Consistency in revenue recognition practices.

Expense Recognition:

Proper classification and allocation of expenses.
Accuracy of expense accruals and provisions.
Adequacy of expense documentation.

Gross Profit Margin:

Analysis of gross profit margin trends.
Identification of factors affecting gross profit margin.

Operating Expenses:

Review of operating expense categories (e.g., selling, general, and administrative expenses). Identification of cost-saving opportunities.
Analysis of operating expense ratios.

Balance Sheet

Asset Valuation:

Accuracy of asset valuations (e.g., property, plant, and equipment, inventory, investments). Impairment testing and write-offs.
Adequacy of asset depreciation and amortization.

Liability Recognition:

Accuracy of liability recognition (e.g., accounts payable, accrued expenses, long-term debt). Provision for doubtful debts and other contingencies.
Compliance with debt covenants and other contractual obligations.

Equity:

Analysis of shareholder equity components (e.g., share capital, retained earnings). Review of dividend policies and distributions.
Impact of share-based payments.

Working Capital:

Analysis of working capital components (e.g., current assets, current liabilities). Assessment of liquidity and solvency.
Identification of potential cash flow issues.

General Ledger (GL) Scrutiny

Account Reconciliation:

Accuracy and completeness of account reconciliations.
Timely resolution of reconciling items.
Identification of potential errors or discrepancies.

Transaction Review:

Review of unusual or large transactions.
Verification of supporting documentation.
Identification of potential fraud or errors.

Chart of Accounts:

Review of the chart of accounts for accuracy and consistency.
Identification of opportunities for improvement.

Internal Controls:

Assessment of internal controls over financial reporting.
Identification of control weaknesses and recommendations for improvement.

Cash Flow Statement

Operating Activities:

Analysis of cash flows from operating activities.
Identification of trends in working capital.
Assessment of the impact of non-cash items.

Investing Activities:

Review of cash flows from investing activities.
Analysis of capital expenditures and asset disposals.
Assessment of investment decisions.

Financing Activities:

Analysis of cash flows from financing activities.
Review of debt and equity financing activities.
Assessment of dividend payments and share repurchases.