B4.2 Preliminary Analytical Review - Ratio

The Preliminary Analytical Review - Ratio document allows you to create your own ratios using the data stored within your client's trial balance. Within the one workpaper, you can create an unlimited number of ratios, or you can create an unlimited amount of ratio workpapers.

The format of the ratio workpaper is similar to that of other analytical review documents found in MyWorkpapers. We've broken our instructions down into 3 easy steps.

Step 1 - Setting Your Parameters


The first step to completing your analytical review is to set the details of your analytical review.

You can select the Use external benchmark, Interim values, Initial values, and Final values boxes to display these fields in your ratio table. The Interim, Initial, and Final data ratios are calculated by using the data imported into your trial balance. The Benchmark field is an input cell.

The Display charts chronologically tickbox and the Type of Chart menu allow you to format the display of your chart (should you choose to display it). The Display chart chronologically button has been ticked as a default and will display the horizontal axis in consecutive order. By unselecting this box, the chart will display in the same order that the ratio table displays the data. The type of chart menu allows you to change the menu type from columns to a line chart. 

Step 2 - Completing Your Review

Once you've completed step 1, you can begin your review.

Note: There are seven types of ratios provided as part of the workpaper but these need to be edited based on the type of accounting structure you used. Alternatively, you can create new ratios.

Follow the steps below to calculate your ratio:

  1. Select the Details button next to any ratio or select the Create new ratio button that appears under the ratio table to display the ratio editor;
  2. Edit the ratio (see Step 3 to Step 8 for details);

  3. Create a name for your ratio;

  4. Select your account from the drop-down menu (note that you can change between an account group or individual account by selecting either of those buttons);

  5. Then select “Add Numerator” or “Add Denominator”, depending on where the account should appear in the calculation;

  6. Continue to repeat steps 4 and 5 until you have added all of your numerators and denominators;

  7. Next, choose how you would like your ratio displayed and how you would like it rounded by selecting the “Display as” and “Round to” options;

  8. Once you're happy with your ratio, click the “Add this ratio” button to add it to your worksheet (if you are editing the ratio, the button will display as “Update this ratio”);

  9. The ratio will now display in your table. If you have created a prior year file for this client, the prior year data will also be displayed in your table;
  10. To the right of the table you will see the following ratio options:

  11. You can add comments against your ratio by selecting the comment box icon that appears adjacent to the description of your ratio;
  12. You can also add a comment in the comment box below the chart;

 Step 3 - Document Further Notes and Complete the Conclusion

Once you've completed your analytical review, the final step is to document any further notes in the comment boxes and complete your conclusion.

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