Question: Based on the calculation below that has been done for financial statement and balance sheet (vertical and horizontal analysis and ratios)and the nature of the company's business and its markets, outline the apparent trends and changes in these ratios, the key risk areas for the audit and the matters that will have to be addressed in the audit plan. Give examples of relevant assertions and at least one audit procedure for each assertion.

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What are the trends? Are these positive or negative from a financial management perspective? Are any movements consistent with the over-statement of profit and assets, or the under-statement of expense and liabilities? Summarise the main risks. What audit objectives (e.g., occurrence/existence) are relevant? What audit procedures are useful?

FINANCIAL STATEMENT A NSE LL LI M ITE D Income statement (and Comprehensive Income Statement} Data Entry in USSm YEAR ENDED 30 JUNE Account Details Sales revenue Cost of goods sold Trading profit Distribution expense Selling,general and administration includingtransformation expense Operating profit Share of profits of equity accounted investment, net of tax Profit before net financing costs and income tax expense Net financing costs Profit before income tax income tax expense Profitfor the period Profitfor the period is attributable to: Ansell Limited shareholders Noncontrolling interests Profitfor the period Earnings per share: Basic Earnings Per Share in US cents Diluated Earnings Per Share in US cents Other comprehensive income Items thatwill not be reclassified tothe income statement retained earnings Remeasurement of defined benefit superannuationlpostretirement health benefit plans "ax benefit on items that will not be subsequently reclassified to the income statement Other reserve Change in fair value of equity investment designated as fairvalue through other CI "ax expense on items thatwill not be subsequently reclassified to the income statement "otal items that will not be reclassified to the income statement Items that may subsequently be reclassified to the income statement: Foreign Currencytranslation reserve Net exchange differences on translation of financial statementsof foreign subsidiaries Hedging reserve Movement in effective cash flow hedges for the year Movement in time value of options for the year "ax benefit on items that may subsequently be reclassified to the income statement "otal items that may subsequently be reclassified to the income statement Other comprehensive income forthe period Total comprehensive income for the period Attributable to: Ansell Limited shareholders Noncontrolling interests Total comprehensive income for the period 2020 1613.? 981.0 632.? ?6.4 339.6 216.? 216.? 1?.4 199.3 41.3 158.0 156.6 1.4 158.0 120.2 118.4 2.3 5.1 2.8 29.2 3.6 0.2 0.9 32.1 -29.3 128.? 128.2 0.5 128.? 2021 2026.9 1216.9 810.0 86.4 393.? 329.9 8.1 338.0 19.9 318.1 69.8 248.3 246.? 1. 6 248.3 192.2 189.6 0.? 0.2 0.5 24.4 0.4 0.4 25.2 25.? 2?4.0 2?2.1 1.9 2?4.0 2022 1952.1 1286.3 665.8 101.6 3?2.6 236.6 8.5 228.1 19.? 208.4 48.6 159.8 158.? 1.1 159.8 125.2 123.8 5.5 1.4 0.3 0.1 4.3 41.1 14.? 0.1 4.? 31.2 -26.9 132.9 132.6 0.3 132.9 Vertical Analysis ANSELL LIMITED Income statement (and Comprehensive Income Statement} Data Entry in USSm YEAR ENDED 30JUNE Account Details Sales revenue Cost of goods sold Trading profit Distribution Selling,general and administration including transformation Operating profit Share of profits of equity accounted investment, net oftax Profit before netfinancing costs and income tax expense Net financing costs Profit before income tax income tax expense Profitfor the period Profitfor the period is attributable to: Ansell Limited shareholders Noncontrolling interests Profitfor the period Earnings per share: Basic Earnings Per Share in US cents Diluated Earnings Per Share in US cents Other comprehensive income Items that will not be reclassified to the income statement retained earnings Remeasurement of defined benefit superannuationfpostretirement health benefit plans "ax benefit on items that will not be subsequently reclassified to the income statement Other reserve Change in fair value of equity investment designated as fair value through other CI "ax expense on items that will not be subsequently reclassified to the income statement "otal items that will not be reclassified tothe income statement Items that may subsequently be reclassified to the income statement: Foreign Currency translation reserve Net exchange differences on translation of financial statementsof foreign subsidiaries Hedging reserve Movement in effective cash flow hedges for the year Movement in time value of options forthe year "ax benefit on items that may subsequently be reclassified to the income statement "otal items that may subsequently be reclassified to the income statement Other comprehensive income for the period Total comprehensive income forthe period Attributable to: Ansell Limited shareholders Noncontrolling interests Total comprehensive income forthe period 2020 100% 60. 8% 39.2% 4. 7% 21. 0% 13.4% 0. 0% 13.4% 1. 1% 12.4% 2. 6% 9.8% 9.7% 0.1% 9.8% 14% 13% 0. 1% 0. 3% 0. 0% 0. 0% 0. 2% 1.8% 0. 2% 0. 0% 0.1% 2. 0% 1.8% 8.0% 19% 0.0% 8.0% 2021 100% 60.0% 40.0% 4.3% 19.4% 16.3% 0.4% 16.1% 1.0% 15.?% 3.4% 12.3% 12.2% 0.1% 12.3% 9.5% 9.4% 0. 0% 0. 0% 0. 0% 0. 0% 0. 0% 1.2% 0. 0% 0. 0% 0. 0% 1. 2% 1.3% 13.5% 13.4% 0.1% 13.5% 2022 100% 65.9% 34.1% 5.2% 19.1% 12.1% 0.4% 11.1% 1.0% 10.?% 2.5% 8.2% 8.1% 0.1% 8.2% 6.4% 6.3% 0.3% 0.1% 0. 0% 0. 0% 0. 2% 2.1% 0.8% 0.0% 0.2% 1.6% 1.4% 6.8% 6.8% 0.0% 6.8% Horizontal Analysis ANSELL IJMITED Income statement (and Comprehensive Income Statement} Data Entry in USSm YEAR ENDED 30 JUNE Account Details 2020 2021 2022 Sales revenue 100.0% 125.6% 121.0% Cost of goods sold 100.0% 124.0% 131.1% Trading profit 100.0% 128.0% 105.2% Distribution 100.0% 113.1% 133.0% Selling,general and administration including transformation 100.0% 115.9% 109.?% Operating profit Share of profits of equity accounted investment, net of tax #DIVID! 'DIWD! 'DIWD! Profit before net financing costs and income tax expense 100.0% 156.0% 105.3% Net financing costs 100.0% 114.4% 113.2% Profit before income tax 100.0% 159.6% 104.6% income tax expense 100.0% 169.0% 11?.}'% Profitfor the period 100.0% 15?.2% 101.1% Profitfor the period is attributable to: Ansell Limited shareholders 100.0% 15?.5% 101.3% Noncontrolling interests 100.0% 114.3% }'8.6% Profitfor the period 100.0% 15?.2% 101.1% Earnings per share: Basic Earnings Per Share in US cents 100.0% 159.9% 104.2% Diluated Earnings Per Share in US cents 100.0% 160.1% 104.6% Other comprehensive income Items that will not be reclassified to the income statement retained earnings Remeasurement of defined benefit superannuationlpostretirement health benefit plans 100.0% 30.4% 239.1% "ax benefit on items that will not be subsequently reclassified to the income statement 100.0% 3.9% 2}'.5% Other reserve Change in fair value of equity investment designated as fairvalue through other CI rthNlD! rthIWD! rDIWD! "ax expense on items that will not be subsequently reclassified to the income statement 'DIVfD! PDIWD! 'DIWD! "otal items that will not be reclassified to the income statement 100.0% 119% 153.6% Items that may subsequently be reclassified to the income statement: Foreign Currency translation reserve Net exchange differences on translation of financial statementsofforeign subsidiaries 100.0% 83.6% 140.8% Hedging re serve Movement in effective cash flow hedges for the year 100.0% 11.1% 408.3% Movement in time value of options for the year 100.0% 200.0% 50.0% "ax benefit on items that may subsequently be reclassified to the income statement 100.0% 0.0% 522.2% "otal items that may subsequently be reclassified to the income statement 100.0% }'8.5% 912% Other comprehensive income forthe period 100.0% 8}'.7% 91.8% Total comprehensive income for the period 100.0% 212.9% 103.3% Attributable to: AnsellLimited shareholders 100.0% 212.2% 103.4% Noncontrollinginterests 100.0% 380.0% 60.0% Total comprehensive income for the period 100.0% 212.9% 103.3% \f\f\f\f