HONEST Partners

Your forensic accounting firm, HONEST Partners, has been engaged by the chief executive officer (CEO) of GYMZ Limited (GYMZ). GYMZ operates a series of precious metal mines throughout Australia. GYMZ is considering entering into a joint venture with another mining company, GOLDY Limited (GOLDY). As part of this joint venture proposal, GOLDY has provided GYMZ with its income statement for the last three financial years. GYMZ is concerned that GOLDY has manipulated aspects of its income statement to make it a more attractive joint venture partner. Based on the information in the table below, describe what forensic accounting tools (including interviews and financial analysis methods) you could use to reach a view about this allegation. For each of the tools you refer to, provide a critical analysis of their respective advantages and disadvantages [400 word limit] (15 Marks)