The document outlines the steps to analyze a case study: 1) understand the case context and key issues, 2) analyze the case by identifying causes and connecting factors, 3) prioritize issues and determine the appropriate analysis tools, 4) generate and evaluate alternatives using decision criteria, 5) make a recommendation supported by the analysis, and 6) provide an action plan for implementation if required. The goal is to logically analyze problems, evaluate solutions, and make a supported recommendation.

1. Skim the Case (Quickly understand the case)What is required of me and what is my roleWhat are the main issues and why those are important to the organization.What industry does the organization operate in, what is state of economyWhat are key organization factors which can affect behavior - goals, control systems, incentive systems, critical business functions, etcWho are stakeholders eg. investors, employees, creditors, customers, publicWho are readers of the reportPA1.PA2 Prep Course PrepCourse.BalbirCGA.com1

2. Analyze the caseIdentify the cause of the problem, not effect. Connect all factors in the case. Use these techniques to identify the problem – qualitative, quantitative, ratio, financial statement analysis, etc. Prioritize the issuesDetermine the appropriate tool for analysis, eg accounting or business tool.Use both qualitative and quantitative analysisPA1.PA2 Prep Course PrepCourse.BalbirCGA.com2

3. Generate alternatives (You have to understand what options are available to you)Generate as many alternative as possibleAll alternatives should address the cause identified aboveOnly consider alternatives which support the facts given in the question.PA1.PA2 Prep Course PrepCourse.BalbirCGA.com3

4. Decision criteria (before you can take decision, you have to understand what is important for you)Key success factors of the organization (This depends on corporate strategy)Weigh the criteria eg safety of the personnel are weighted more heavily than others, such as costConsider constraints - eg GAAP, Cost, Finance, cash flow, market share, etc.Ethical Issues : Due Diligence, Public Interest and Privacy Standards, Confidentiality , etcQualitative factors - customer satisfaction, competitive advantage, corporate image, employee moral, etcQuantitative factors - profit, cost, return on investment, market share, capacity, etcTailor your decision criteria for each casePA1.PA2 Prep Course PrepCourse.BalbirCGA.com4

5. Analyze and evaluate the alternatives (Evaluate the alternatives against the decision criteria above)Determine GAAP/GAAS requirements for each alternative. Also consider fair presentation and financial statement usersUse appropriate accounting procedure or business tool egAnalytical or Substantive procedure, capital investment decision, net present value, sensitivity analysis, etcDetermine ethical, moral and financial consequences of each alternative.Consider how each alternative affects various stakeholders, if there is tie, consider how you prioritizePA1.PA2 Prep Course PrepCourse.BalbirCGA.com5

6. Make recommendationCheck if you have to make a DECISION or a RECOMMENDATION. If you are a manager, you take a decision. In most of the cases, you make recommendation.Double check decision using the decision criteria decided above .Decision should follow logically from your analysisAccept responsibility for the decision as it is based on factsIn exams, your recommendation will be judged against logic. There could be more than one recommendation. Whatever recommendation you give, support it with facts and logic.PA1.PA2 Prep Course PrepCourse.BalbirCGA.com6

7. Action and implementation planCheck question if action plan is requiredDetermine the next logical steps to implement the decisionAction plan will answer - who, what, where, and how of the implementation phaseInclude a budget timeline for each step of implementationPA1.PA2 Prep Course PrepCourse.BalbirCGA.com7