How would I write this assignment?

Auditors use analytical procedures during the initial phase of the audit process to help identify unusual fluctuations in relationships, enhance the understanding of the client, identify accounts at risk of misstatement, and develop an initial indication of the risk of material misstatement.

Your firm has audited the financial statements of Retailer, Inc. for the past five years.Each year, the client has received an unqualified (clean) audit opinion.Retailer operates in the fashion industry and sells merchandise to consumers through its department stores and its website. It buys approximately 60 percent of its inventory from suppliers who manufacture in China.Retailer only accepts cash or debit or credit cards, so it has no accounts receivables.

Your supervisor has asked you to review the ratios and financial information provided below to assess the risk of material misstatement for the current year's audit.After thoroughly evaluating the information presented, please write a memo the In-Charge auditor with a copy to the Audit File.Your memo should include your conclusions about the client's liquidity, solvency, and profitability and your justification for those conclusions.

The rubrics provided will be used to grade the assignment.Headings are useful for those who will be reading the memo.Use your judgment about active v. passive voice.Submit your Word file as an attachment to this assignment.

Fashion Retailer, Inc.

2022

2021

2020

2019

2018

Current Ratio

1.52

1.46

1.61

1.67

1.93

Quick Ratio

0.17

0.19

0.37

0.37

0.59

Inventory Turnover

3.00

2.90

2.90

3.01

2.86

No. Days Sales in Inventory

122

126

126

121

128

Accounts Payable Turnover

8.65

8.42

8.51

8.40

8.22

No. Days to Pay Accounts Payable

42

43

43

43

44

Debt to Assets

0.85

0.84

0.85

0.86

0.82

Long-Term Debt to Assets

0.60

0.56

0.59

0.61

0.60

Debt to Equity

5.60

5.11

5.73

6.21

4.44

Gross Profit Margin

32.5%

34.6%

35.6%

36.0%

34.8%

ROA

-3.2%

-1.3%

-0.2%

-5.2%

-6.5%

ROE

-20.0%

-8.6%

-1.3%

-31.8%

-28.7%

Fashion Retailer, Inc. (dollars are in millions)

2022

2021

2020

2019

2018

Current Assets

Cash

333

458

887

900

1,318

Total Quick Assets

333

458

887

900

1,318

Inventory

2,437

2,803

2,854

2,721

2,652

Other Current Assets

189

190

160

397

361

Total Current Assets

2,959

3,451

3,901

4,018

4,331

Total Assets

7,721

8,454

9,118

9,442

10,404

Current Liabilities

Accounts Payable

847

973

977

925

997

Other Current Liabilities

1,095

1,396

1,442

1,487

1,244

Total Current Liabilities

1,942

2,369

2,419

2,412

2,241

LT Liabilities

4,609

4,702

5,345

5,721

6,249

Total Liabilities

6,551

7,071

7,764

8133

8,490

Stockholders' Equity

Retained Earnings

(3,701)

(3,478)

(3,479)

(3,498)

(2,844)

Total Equity

1,170

1,383

1,354

1,309

1,914

Total Liabilities and Equity

7,721

8,454

9,118

9,442

10,404

Sales

11,664

12,554

12,571

12,625

12,257

Cost of Goods Sold

7,870

8,208

8,097

8,074

7,996

Gross Profit

3,794

4,346

4,474

4,551

4,261

Depreciation Expense

556

570

609

616

631

Interest Expense

313

325

363

405

406

Income Taxes

(16)

(126)

1

9

23

Net Income

(255)

(118)

(17)

(513)

(717)

NI + Interest + Taxes

42

81

347

(99)

(288)

EBITA

598

651

956

517

343

Cash Flow from Operating Activities

359

454

334

440

239

Cash Flow from Investing Activities

(244)

(229)

(316)

(296)

(142)

Cash Flow from Financing Activities

(240)

(654)

(31)

(562)

(294)