Explain the circumstances when an auditor needs to assess the components of the audit risk model and the effect of the assessment on the planned detection risk and planned audit evidence.

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A: Inventories = Total current assets - (Cash + A/R) = 71500 - (32175 + 17875) = 21450 Inventory…

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A: UCC= Undepreciated Capital Cost is the balance of cost which is left for further depreciation.

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Q: Current ratio Quick ratio Inventories turnover period*

A: Introduction: Return on capital employed(ROCE): ROCE –  It is a financial ratio and it is used to…