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 accounting ratios and percentages above.

What is the purpose of using analytical procedures on the clients performance measurement system?

What are some of the key factors that impact group interaction in an auditassignment?