You are assigned to lead the team that will Audit ALFA company financial statements. Following Ratios...

 

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You are assigned to lead the team that will Audit ALFA company financial statements. Following Ratios Extracted from ALFA books Description Gross profit [% of total sales] Credit Sales [% of total sales] Receivables Turnover Inventory % of Total assets Inventory Turn over Current Ratio 2018 %42 40% 4.56 24.7% 2.15 2.31 2019 38% 55% 3.258 26.3% 2.4 2.02 2020 %65 75% 2.41 32.2% 1.75 1.15 Industry average 40% 35% 5.1 23.4% 2.21 2.35 i-Identify with Explanations "3" main issues to be considered. ii- Identify with Explanations Appropriate evidence to be obtained. You are assigned to lead the team that will Audit ALFA company financial statements. Following Ratios Extracted from ALFA books Description Gross profit [% of total sales] Credit Sales [% of total sales] Receivables Turnover Inventory % of Total assets Inventory Turn over Current Ratio 2018 %42 40% 4.56 24.7% 2.15 2.31 2019 38% 55% 3.258 26.3% 2.4 2.02 2020 %65 75% 2.41 32.2% 1.75 1.15 Industry average 40% 35% 5.1 23.4% 2.21 2.35 i-Identify with Explanations "3" main issues to be considered. ii- Identify with Explanations Appropriate evidence to be obtained.