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Accounting Ratios & Percentages 0-43 Earnings per Share Performance Ratios including the following: Gross Margin Expenses as a percentage of revenue: Distribution Costs Administrative Expenses Selling Expenses Operating Profit 1-04 0-80 0-78 0-20 0-07 0-20 0-34 0-15 0-13 0-02 0-48 Required: - a) Using the information given in the question identify THREE high risk areas for the audit and explain why they are high risk areas. b) For each high risk area identified, describe one audit procedure you would perform in response to those risks.

Accounting Ratios & Percentages 0-43 Earnings per Share Performance Ratios including the following: Gross Margin Expenses as a percentage of revenue: Distribution Costs Administrative Expenses Selling Expenses Operating Profit 1-04 0-80 0-78 0-20 0-07 0-20 0-34 0-15 0-13 0-02 0-48 Required: - a) Using the information given in the question identify THREE high risk areas for the audit and explain why they are high risk areas. b) For each high risk area identified, describe one audit procedure you would perform in response to those risks.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Accounting Ratios & Percentages 0-43 Earnings per Share Performance Ratios including the following: Gross Margin Expenses as a percentage of revenue: Distribution Costs Administrative Expenses Selling Expenses Operating Profit 1-04 0-80 0-78 0-20 0-07 0-20 0-34 0-15 0-13 0-02 0-48 Required: - a) Using the information given in the question identify THREE high risk areas for the audit and explain why they are high risk areas. b) For each high risk area identified, describe one audit procedure you would perform in response to those risks.
Transcribed Image Text:Accounting Ratios & Percentages 0-43 Earnings per Share Performance Ratios including the following: Gross Margin Expenses as a percentage of revenue: Distribution Costs Administrative Expenses Selling Expenses Operating Profit 1-04 0-80 0-78 0-20 0-07 0-20 0-34 0-15 0-13 0-02 0-48 Required: - a) Using the information given in the question identify THREE high risk areas for the audit and explain why they are high risk areas. b) For each high risk area identified, describe one audit procedure you would perform in response to those risks.
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