Please assist with this assignment on Vertical and Horizontal Analysis ( already prepared) and offer a detailed explanation on areas that you believe may require more substantive audit procedures later in the audit as well as identify areas you suspect may be vulnerable to management misstatement or employee fraud.

Assignment:

Using the financial information obtained from the website of Amphenol Corporation and prepare vertical and horizontal analysis of the selected financial information you consider relevant for conducting analytical audit procedures. Comment on the areas that you believe may require more substantive audit procedures later in the audit. Be sure to discuss the interrelationships of the various accounts to one another. Identify areas you suspect may be vulnerable to management misstatement or employee fraud.

Most public companies will provide at least three years of comparative data for your vertical integration requirement. Be sure to include your detailed account schedule as an exhibit or reference to your submission.

Amphenol Corporation Consolidated Statement of Income { dollars in millions) Net sales Cost of sales Gross profit Acquisitionrelated expenses Selling, general and administrative expenses Operating income Interest expense Loss on earlyI extinguishment of debt Other income, net Income before income taxes Provision for income taxes Net income Less: Net income attributable to noncontrolling interests Net income attributable to Amphenol Corporation Amphenol Corporation Consolidated Balance Sheets {dollars and 5h ones in millions, except persh are data) Year Ended December 31, Vertical Analysis Horizontal Analysis Change w w w & Amount % 3 3,593.9 s 3,225.4 100.00% 100.00% 3 323.5 4.54% S 5,934.3 $ 5,509.4 59.02% 53.20% 3 325.4 5.30% $ 2,664.1 S 2, 616.0 30.98% 3 1.80% $ 48.1 1.84% 3 11.5 s 25.4 0.13% 0.31% 3 {13.9} 54.:r'2% $ 1,014.2 5 921.4 11.79% 11.31% S 42.3 4.41% $ 1,533.4 $ 1,519.2 19.05% 19.59% $ 19.2 1.19% $ {115.4} s [112.5]: 1.34% 1.43% 3 2.2 1.3:r'% s 5 (14.3]: 0.00% 0.1?% S 14.3 100.00% $ 3.5 $ 3.5 0.04% 0.10% $ [5.0} -53.14% $ 1,526. 6 S 1,495.9 1?.?5% 18. 19% $ 30. 3' 2.05% 3 {313.3} s [331.9]: 3.54% 4.04% s 13.5 5.50% S 1,213.3 $ 1,154.0 14.11% 14.15% S 49.3 4.24% $ {9.9} $ [9.0]: -0. 12% -0.11% $ {0.9} 10.00% E 1,203 .4 1 155.0 13 .99% 14.04% $ 48.4 4.19% \fEquity: Class A Common Stock, $0.001 par value; 1,000.0 shares authorized; 300.3 shares issued and 299.3 shares outstanding as of December 31, 2020; 298.7 shares issued and 297.9 shares outstanding as of December 31, 2019 0.3 $ 0.3 0.00% 0.00% 0.00% Additional paid-in capital $ 2,068.4 $ 1,683.3 16.78% 15.56% 385.1 22.88% Retained earnings $ 3,705.4 $ 3,348.4 30.06% 30.96% 357.0 10.66% Treasury stock, at cost; 1.0 shares and 0.8 shares as of December 31, 2020 and 2019, respectively $ (111.1) $ (70.8) -0.90% -0.65% (40.3) 56.92% Accumulated other comprehensive loss $ (278.1) $ (430.9) -2.26% -3.98% 152.8 -35.46% Total shareholders' equity attributable to Amphenol Corp $ 5,384.9 $ 4,530.3 43.68% 41.89% S 854.6 18.86% Noncontrolling interests 67.0 $ 65.9 0.54% 0.61% 1.1 1.67% Total equity $ 5,451.9 $ 4,596.2 44.23% 42.50% 855.7 18.62% Total liabilities and equity $ 12,327.3 $ 10,815.5 100.00% 100.00% S 1,511.8 13.98% https://www.annualreports.com/HostedData/AnnualReports/PDF/NYSE_APH_2020.pdf p.47-49