Case Study $1$ Carinal Ltd$.$ specializes in the development of electronic components within quite a competitive environment causing concerns for marketing and pricing. Its non$-$current 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 $302023.$ You have been presented with the following draft financial information about Carinal with incomplete ratios and percentages calculation. $$ Income statement Year ended June $3020232022$ $$\text{'}000$ $$\text{'}000$ Revenue $2245018675$ Cost of sales $84758055$ Gross Profit $1397510620$ Distribution costs $42453120$ Administrative expenses $12762134$ Selling expenses $5555512$ Profit from operations $28994854$ Net interest receivable $1245495$ Profit before tax $41445349$ Income tax expense $21452345$ Net profit $19993004$ Retained profits $13252105$ Dividends paid $$1250$ $$1049$ Accounting ratios and percentages $$ Earnings per share $054125$ Performance ratios include the following: $$ Gross margin $(($Gross profit$/$revenue$)??$ Expenses as a percentage of revenue: $$ Distribution costs $??$ Administrative expenses $??$ Selling expenses $??$ Operating profit as a percentage of revenue $??$ Part A Required $1.$ 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. $(25$ Marks$)2.$ By reference to requirement $1,$ identify the areas that are subject to increased audit risk and describe the further audit work you would perform in response to those risks. $(25$ Marks$)$ Part B By reference to Part A: $1.$ What is the purpose of using analytical procedures on the client$$s performance measurement system? $(10$ Marks$)2.$ What are some of the key factors that impact group interaction in an audit assignment? $(10$ Marks$)$