Question: - Audit Planning and risk assessment Audit Planning and risk assessment You are a part of the team responsible for planning the audit engagement for

- Audit Planning and risk assessment

Audit Planning and risk assessment You are a part of the team responsible for planning the audit engagement for SG Fleet Group Limited (ASX code SGF), a vehicle fleet leasing and management company also providing vehicle finance and salary packaging services, in 2022. You are required to gather relevant background information and prepare a report for a meeting with your audit seniors. Assume that this is the first time your firm will audit this client. Required: Your report must address the following issues: (a) Calculate at least three ratios that are useful to assess the going concern status of SGF. You must document the ratios in a format similar to the following: Ratio 1. 2. 3. 2022 2021 2020 2019 2018 Based on your calculations, you must assess the likelihlood (high, medium, low) that SGF is likely to fail financially in the next 12 months. Your discussion must be supported by an appropriate data visualization technique (e.g., a graph). (12 marks) (550 words) (b) Identify an appropriate base and set planning materiality for SGF. Explain why you have chosen this base and the percentage you have used. (6 marks) (300 words)

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