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What is Quality of Earnings?

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Audited financial statements focus on compliance with GAAP accounting standards, whereas Quality of Earnings reports focus on the company’s earnings history and potential. Sales concentrations and/or backlog risk. Analysis of inventory reserves and allowances. Unusual or nonrecurring items of income or expense.

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What is Financial Planning and Analysis (FP&A)?

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These models help assess the potential outcomes of various financial decisions and aid in strategic planning, risk analysis, and sensitivity analysis. Compliance and Regulation: Financial Planning and Analysis ensures compliance with financial regulations, accounting standards, and reporting requirements.