Carinal Ltd . specializes in the development of electronic components within quite a competitive environment causing concerns
Fantastic news! We've Found the answer you've been seeking!
Question:
Carinal Ltd specializes in the development of electronic components within quite a competitive environment causing concerns for marketing and pricing. Its noncurrent assets primarily include IT software, property, and investments, and there have been additions to these during the year.
As audit manager, you are conducting a preliminary analytical review and associated risk analysis for this client for the year ended June You have been presented with the following draft financial information about Carinal with incomplete ratios and percentages calculation.
INCOME STATEMENT
Year ended June
$ $
Revenue
Cost of Sales
Gross Profit
Distribution costs
Administrative expenses
Selling expenses
Profit from operations
Net interest receivable
Profit before tax
Income tax expenses
Net profit
Retained profits
Dividends paid
ACCOUNTING RATIOS AND PERCENTAGES
Earnings per share
Performance ratios include the following:
Gross Margin Gross profitrevenue
Expenses as a percentage of revenue:
Distribution costs
Administrative expenses
Selling expenses
Operating profit as a percentage of revenue
Answer the following questions below with references to back your answers
Using the information above, complete the calculation of accounting ratios and percentages and comment briefly on the performance of the company for the two years.
By reference to question number identify ten areas that are subject to increased audit risk and describe the further audit work you would perform in response to those risks.
Related Book For
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
Posted Date: