Auditing and Assurance

This document provides information on auditing and assurance, including key background information, assumptions on the assessment of going concern, areas at risk of material misstatement, assertions for misstated accounts, and analysis of financial information. It also includes identification of control weaknesses and recommendations for improvement.

Running head: AUDITING AND ASSURANCE
Auditing and assurance
Name of the student
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Table of Contents
Question 1........................................................................................................................................2
1. Identifying the key background information including industry details..............................2
2. Providing relevant assumptions on the assessment of going concern, based on the
background and financial analysis...............................................................................................2
3. Identifying the areas that is considered to be at risk of material misstatement....................3
4. Providing two assertions for material misstated accounts identified in the requirements....3
5. Providing relevant analysis of the Financial information.....................................................4
Answer 2..........................................................................................................................................5
1. Identification of control weakness........................................................................................5
2. Account balance assertion....................................................................................................6
3. Recommendation for control improvement..........................................................................7
Answer 3..........................................................................................................................................8
1. Requirement of control test..................................................................................................8
2. Justification about decision...................................................................................................8
Reference and bibliography...........................................................................................................10
Appendix........................................................................................................................................12

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Question 1
1. Identifying the key background information including industry details
The organization Dalby Logistics Limited (DLL) was mainly formed in 2010 by merging
two companies that dealt in transportations of Forestry products, mineral sand and iron ore. The
company was formed in 2010, where it aims to support the logistics and cargo conglomerate for
generating higher revenues from operations. Moreover, the company not only conducts
transportations of Forestry products, mineral sand and iron ore, it also specializes in conducting
delivery of flammable components such as gas, oil, lithium, coal and manganese. Furthermore,
the operations of Dalby Logistics Limited (DLL) are no limited to transportation but it also
provides warehouse services to its client, for which it has a large hub complex in Sydney.
Additionally, the company also has relevant investments in 5 entities, while operating 20
subsidiaries. Australia considered the logistics industry a part of the productivity chain, where
more than 14.5% of the GDP is contributed by the industry, which is essential to increase the
national productivity. Moreover, the logistics industry is responsible for providing more than 1
million jobs in Australia, while 165,000 companies are currently operating in the region.
2. Providing relevant assumptions on the assessment of going concern, based on the
background and financial analysis
The going concern assumption is relevantly considered as the overall methods that are
followed by the company in accordance with the general-purpose financial reporting framework.
In addition, the going concern assumptions directly indicate that the operations of the
organization need to meet the desired commitments, objectives, obligations and others.
Moreover, the going concern concept directly states that the company’s operations and
objectives should aim in continuing the business for longer duration. Therefore, investors for
assessing the conditions of the organization need to evaluate their historical financial data. The
trend analysis of Dalby Logistics Limited (DLL) has mainly detected that its overall profit level
has declined during the three-year period from 2015 to 2017. On the other hand, the overall
profits of the company during the financial year of 2018 have mainly inclined by the levels of
173.93% in comparison to the previous financial year. In addition, the continuous higher
performance of the organization is a major proof of the organization is following the rules of the
going concern. In addition, the financial position of the company has also increased over the

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period of the period of its operations, as the management is increasing their current assets to
support the short-term obligations, which might incur in the future. Furthermore, the company
has been acquiring new organization, which is a relevant proof that indicates that the company’s
going concern factors are valid (Eng, Tian& Robert, 2018).
3. Identifying the areas that is considered to be at risk of material misstatement
After analyzing the financial statement of the Dalby Logistics Limited (DLL) relevant
accounts that might have the most risk if material misstatement is depicted as follows.
 Trade receivables- The major problems can be identified from the trade receivables of the
organizations, as there is relevant scope of conducting material misstatement by the
organization. The employee of the organization could misstate the overall trade balances,
which might increase the level of bas debt in the financial account. This could directly
affect the overall financial performance of the organization, as the overall bad debts is
rising instead of the account receivables value in the balance sheet.
 Borrowings- The second major accounts, which could be subject to material misstatement
is borrowings, as the management could manipulate the amounts in the borrowings for
increasing the overall expenses in the financial report. Furthermore, the analysis of the
annual report has indicated that the borrowing levels of the company have increased over
the period of the 4 financial years. Hence, it could be possible that the organization has
increased its borrowings for fictitious purposes.
 Inventory- Moreover, the maximum misstatement that could be conducted by the
organization is in the investor levels, as the employees could misstate the actual investors
that are being held by the organization. This misstatement in the inventory valuation will
have direct impact on the performance of the company. Inventory level and valuation is
conducted after the completion of the physical stock count by the employees of the
organization, which could be wrong due to the occurrence of human error.
4. Providing two assertions for material misstated accounts identified in the requirements
 Trade receivables- There are relevantly two assertions that are present in trade
receivables, where the previous year’s accounts receivable data could be inputted in the
current period, which could have negative impact on the financial performance. In

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addition, the second assertion is that the overall transaction is not been classified in the
financial statement of the organization.
 Borrowings- There are two specific assertion that is related to borrowings of the
organization, where the amount inputted it the financial report could be paid off to the
loan provider. The second assertion that might incur for the borrowings accounts is the
inaccuracy in reporting the accurate amount in the financial report
 Inventory- The first assertion present in the annual report is the miscalculation of the total
inventory value. The second assertion is the in omission of certain inventory during the
accounting phase
5. Providing relevant analysis of the Financial information Providing relevant comparison on the results of 2017 and 2018
o The comparison has indicated that both sales value and net profit values of the
organization has increased from 2017 to 2018. In addition, the company raised more
borrowings during the financial year, while its current assets declined and current
liabilities increased in 2018 as compared to 2017. Conducting the Trend analysis of the financial statement
o The trend analysis has indicated about the increment in total borrowings, trade
payables, total investment properties, total Property & plant and total intangible
assets. The trend analysis has also indicated about he increments in sales volume and
net profit, which was conducted by the organization in 2018 as compared to 2017 Conducting the Ratio analysis of the financial statement
o Profitability: The increment in the gross profit from 7.31% in 1016 to 12.61% in
2018, which indicates the high level of income generated by the organization.
o Solvency: The solvency position of the company has mainly increased from the levels
of 0.42 to 0.147, which indicates that the financial performance of the organization is
mainly deteriorated.
o Efficiency: The efficiency position of the organization has mainly decreased, as the
payment collection days has mainly increased from 61 days to 71 days.
o Liquidity:The current ratio of the company has mainlydeteriorated from the levels
o of 2.55 to 1.755, which is an alarming condition for the organization.

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Thus, it could be indicated that only profitability condition of the company is improving,
while other financial ratios are worsening over the period of time.
Answer 2
1. Identification of control weakness
Various weaknesses observes in case of purchases, payments and accounts payable are as
follows –
 Only the production manager is in control of entire process for raw material management,
order and looking into the inventories in hand
 Company does not follow any system for purchase order which is an important thing for
the purpose of making payments maintaining records related to purchases.
 Though the warehouse personnel are trusted and working for long time, on the other side
they will have most of the opportunity of committing fraud.
 Only one of warehousing staff is responsible for receiving goods, checking them, signing
the delivery dockets and acknowledging that the material has been received. Hence, if he
commits any fraud it is not possible to detect easily as the entire process is solely
managed by him.
 Movements of goods in and out the warehouse are not recorded. Only monitoring the
stock level is not sufficient as it does not maintain from where the goods are coming and
where they are going. Further, daily movement monitoring only cannot specify the stock
at particular point of time.
 Receiving the supplier invoice, printing them and stamping them for payment process all
are done by accounts payable clerk. If by mistake any invoice is missed by him it will
cause great problem to the company as the payment for that invoice will not be processed
 Accounts payable clerk does not maintain any proper system for communicating
regarding the outstanding invoices to the production managers and just communicate the
same through phone call. If in case he communicates wrong details or the production
manager listen anything incorrect it will create huge miscommunication and will have
impact on entire process.

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 Production manager receives the deliveries and check the same solely based on his
memory. He does not maintain any manual or computerized system for outstanding
invoices which is a big internal control issue
 Supporting documents attached with the payment cheques are signed for avoiding the
duplicate payment. However, the supporting documents are only attached with the
cheques for the non-major suppliers. Hence, internal control lack is there for the
payments to major suppliers and in worst case double payment also may take place
 No particular authorisation requirement is maintained for signing the cheques for making
payment to the suppliers. Generally it is signed by financial controller. However, in his
absence, it is signed by marketing manager irrespective of the fact whether he has
authority for the same or not.
2. Account balance assertion
Raw material inventory – key assertion involved with raw material inventory are –
 Completeness that is all the transactions related to raw material inventory those were
supposed to be recorded in books have been recorded in full
 Accuracy that is all the raw material related transactions are recorded appropriately with
appropriate amount
 Cut off that is purchases made in the current period only entered in the current year
records.
Accounts payable – key assertion involved with accounts payable are –
 Valuation that is payment has been made after making proper adjustments like discounts,
returns and taxes
 Completeness that is all the transactions related to payment those were supposed to be
recorded in books have been recorded in full
 Accuracy that is all the payment related transactions are recorded appropriately with
appropriate amount
 Cut off that is payment for prior periods have not been included in current years book

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3. Recommendation for control improvement
 Process for raw material management shall be segregated among 3-4 employees. For
instance, the employee in charge of processing order shall not be in charge of receiving
the goods.
 Proper system for purchase order shall be followed. For instance, after receiving
quotation it shall be passed by the higher authority, order process document shall be
properly authorised which is an important thing for assuring that only the required things
have been ordered.
 Though the warehouse personnel shall be rotated in regular interval so that one person
will not gain entire control for long time.
 Warehousing related activities shall be segregated among 3-4 employees. For instance,
the employee in charge of receiving the goods shall not be in charge of checking them or
acknowledging that the material has been received.
 Movements of goods in and out the warehouse shall be recorded for each of the in and
out. Only monitoring the stock level is not sufficient as it does not maintain from where
the goods are coming and where they are going.
 Receiving the supplier invoice and payment process, this entire process shall be
segregated among 3-4 employees. For instance, the employee in charge of receiving
invoice shall not be in charge of stamping them for payment process.
 Proper system shall be maintained for outstanding invoices and receiving order. Accounts
payable clerk shall pass on the signed copy of outstanding invoice to the production
managers and while the delivery is received the production manager shall match the
delivery with invoice
 Instead of depending on memory the production manager shall maintain proper manual or
computerized system for receiving and checking deliveries
 Supporting documents shall be attached with all the payment cheques irrespective of
major and non-major suppliers and shall be signed for avoiding duplicate payment.
 Proper authorisation shall be there authorisation for signing the cheques for making
payment to the suppliers. Further, for big amounts like $ 100,000 or more the cheque
shall be signed by the CEO.

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Answer 3
1. Requirement of control test
Yes, the control shall be checked in the audit for the current year. From the given
information it is very clear that all the controls mentioned are of significant important and shall
be tested in regular interval to make sure that the control ate in place. Further, in a year’s time
different changes may take place with regard to the operation of the company, its payment
system, receipt system and inventory control system. Further, though the company has strong
control over its IT security program, IT programmes are always exposed to virus attacks and
sometimes the same are not realised immediately. Hence, for assuring that the controls are in
place, some of the controls shall be tested in current year’s audit, if not all.
2. Justification about decision
Control
number
Testing required /
not required
Justification
1 Yes As the software is used for the purpose of accounts
payable, inventory control and accounts receivable any
changes in the terms of payment, receipt and method of
internal control during the year will require updating and
testing
2 No As the system is checked by accounts payable clerk any
discrepancies will be noticed by him immediately
3 Yes As the risk of shipping goods to the customer who
already exceed the credit limit is significant and the
system has not been tested in previous year’s audit it
shall be tested in current year
4 Yes As the changes made in the system by the client in
current year it must be tested in current year’s audit for
checking the changes
5 No As the control over IT security and programs are

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excellent and the auditors checked in during previous
year.

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Reference and bibliography
Altman, E. I., Iwanicz‐Drozdowska, M., Laitinen, E. K., &Suvas, A. (2017). Financial distress
prediction in an international context: A review and empirical analysis of Altman's Z‐
score model. Journal of International Financial Management & Accounting, 28(2), 131-
171.
Amiram, D., Chircop, J., Landsman, W. R., & Peasnell, K. V. (2017). Mandatorily disclosed
materiality thresholds, their determinants, and their association with earnings
multiples. Columbia Business School Research Paper, (15-69).
Chong, H. G. (2015). A review on the evolution of the definitions of materiality. International
Journal of Economics and Accounting, 6(1), 15-32.
Contessotto, C., & Moroney, R. (2014). The association between audit committee effectiveness
and audit risk. Accounting & Finance, 54(2), 393-418.
Crowther, D. (2018). A Social Critique of Corporate Reporting: A Semiotic Analysis of
Corporate Financial and Environmental Reporting: A Semiotic Analysis of Corporate
Financial and Environmental Reporting. Routledge.
DeFusco, R. A., McLeavey, D. W., Pinto, J. E., Anson, M. J., & Runkle, D. E.
(2015). Quantitative investment analysis. John Wiley & Sons.
Elder, R. J., Lowensohn, S., & Reck, J. L. (2015). Audit firm rotation, auditor specialization, and
audit quality in the municipal audit context. Journal of Government & Nonprofit
Accounting, 4(1), 73-100.
Eng, L. L., Tian, X., & Robert Yu, T. (2018). Financial statement analysis: evidence from
Chinese firms. Review of Pacific Basin Financial Markets and Policies, 21(04), 1850027.
Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. John Wiley &
Sons.
Kristensen, R. H. (2015). Judgment in an auditor's materiality assessments. Danish Journal of
Management and Business, 79(2), 53-65.

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STUDENT NAME
STUDENT NUMBER
Robinson, T. R., Henry, E., Pirie, W. L., &Broihahn, M. A. (2015). International financial
statement analysis. John Wiley & Sons.
Ruhnke, K., Pronobis, P., & Michel, M. (2014). Audit materiality disclosures and credit lending
decisions. Available at SSRN, 2460425.
Sridharan, S. A. (2015). Volatility forecasting using financial statement information. The
Accounting Review, 90(5), 2079-2106.
van Buuren, J., Koch, C., van Nieuw Amerongen, N., & Wright, A. M. (2014). The use of
business risk audit perspectives by non-Big 4 audit firms. Auditing: A Journal of Practice
& Theory, 33(3), 105-128.
Weng, W., Zhu, X., Wang, N., & Peng, B. (2018, July). Analysis on the Whitewashing
Motivation of Financial Statement of Listed Real Estate Companies in China. In 2018
International Conference on Education Science and Social Development (ESSD 2018).
Atlantis Press.
Yoon, K., Hoogduin, L., & Zhang, L. (2015). Big Data as complementary audit
evidence. Accounting Horizons, 29(2), 431-438.
Zamboni, Y., & Litschig, S. (2018). Audit risk and rent extraction: Evidence from a randomized
evaluation in Brazil. Journal of Development Economics, 134, 133-149.

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Appendix
Trend
analysis
Income
statement
Dalby Logistics Limited
Consolidated statement of comprehensive income
Changes in
amount
Changes in %
2015 2016 2017 2018
201
6
201
7
201
8 2016 2017 2018
$'m $'m $'m $'m
Revenue from
continuing
operations
Revenue from
sales and
services
696.
7
632.
4
709.
05
788.
95
-
64.
3
12.3
5
92.2
5
-
9.23% 1.77% 13.24%
Other income
32.9
5
33.8
5
47.3
5 96.1 0.9 14.4
63.1
5 2.73% 43.70%
191.65
%
729.
65
666.
25
756.
4
885.
05
-
63.
4
26.7
5
155.
4
-
8.69% 3.67% 21.30%
Direct
transport and
logistics costs
-
188.
25
-
166.
45
-
185.
05
-
212.
2
21.
8 3.2
-
23.9
5
-
11.58
% -1.70% 12.72%
Repairs and
maintenance
costs -41.5 -42.7
-
44.3
5
-
40.5
5 -1.2
-
2.85 0.95 2.89% 6.87% -2.29%
Employee
benefits
expense
-
253.
45
-
249.
65
-
278.
5
-
308.
75 3.8
-
25.0
5
-
55.3
-
1.50% 9.88% 21.82%
Fuel, oil and
electricity
costs
-
53.0
5
-
37.8
5
-
41.7
5
-
49.2
5
15.
2 11.3 3.8
-
28.65
%
-
21.30% -7.16%
Occupancy
and property
costs -33.1 -31.4 -40.7
-
46.4
5 1.7 -7.6
-
13.3
5
-
5.14% 22.96% 40.33%

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Depreciation
and
amortisation
expense
-
51.7
5
-
50.7
5 -56.7 -58 1
-
4.95
-
6.25
-
1.93% 9.57% 12.08%
Professional
fees -5.4 -5.55 -5.15 -3.85
-
0.1
5 0.25 1.55 2.78% -4.63%
-
28.70%
Loss on
disposal of
available-for-
sale financial
assets
-
13.0
5 0
-
13.0
5 0
Impairment of
non-current
assets
-
22.4
5
-
10.6
5 -13.2 -4.65
11.
8 9.25 17.8
-
52.56
%
-
41.20%
-
79.29%
Reversal of
impairment of
non-current
assets 8.8 8.8 0 0
Other
expenses -9.55 -6.25 -8
-
12.7
5 3.3 1.55 -3.2
-
34.55
%
-
16.23% 33.51%
Total
expenses
-
658.
5
-
592.
45
-
686.
45
-
736.
45
66.
05
-
27.9
5
-
77.9
5
-
10.03
% 4.24% 11.84%
Finance
income 0.9 0.75
11.9
5 13.1
-
0.1
5
11.0
5 12.2
-
16.67
%
1227.7
8%
1355.5
6%
Finance costs -13.5 -16.8
-
18.2
5 -20.6 -3.3
-
4.75 -7.1
24.44
% 35.19% 52.59%
Net finance
costs -12.6
-
16.0
5 -6.3 -7.5
-
3.4
5 6.3 5.1
27.38
%
-
50.00%
-
40.48%
Share of net
profit/(loss) of
associates
accounted for
using the
equity
method 5.2 6.3 -11.3 2.3 1.1
-
16.5 -2.9
21.15
%
-
317.31
%
-
55.77%
Profit before
income tax
63.7
5
64.0
5
52.3
5
143.
4 0.3
-
11.4
79.6
5 0.47%
-
17.88%
124.94
%

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Income tax
expense -15.8 -17.8 -13.7 -43.9 -2 2.1
-
28.1
12.66
%
-
13.29%
177.85
%
Profit for the
year
47.9
5
46.2
5
38.6
5 99.5 -1.7 -9.3
51.5
5
-
3.55%
-
19.40%
107.51
%
Trend
analysis
Balance
sheet
Dalby Logistics Limited
Consolidated balance sheet
Changes in
amount
Changes in %
2015 2016 2017 2018
201
6
201
7
201
8 2016 2017 2018
$'m $'m $'m $'m
ASSETS
Current
assets
Cash and
cash
equivalents 44.1 38.3 95.4 51.95 -5.8 51.3 7.85
-
13.15
%
116.3
3%
17.80
%
Trade and
other
receivables
110.5
5
101.8
5
148.1
5
160.3
5 -8.7 37.6 49.8 -7.87%
34.01
%
45.05
%
Inventories 1.1 1.2 1 1.2 0.1 -0.1 0.1 9.09%
-
9.09% 9.09%
Current tax
receivable 1.25 2.2 1.25 2.2 0
43.18
%
Derivative
financial
instrument
s
271.8
5 0.2
271.
85 0 0.2
Total
current
assets
155.7
5
414.4
5
246.7
5 213.7
258.
7 91
57.9
5
166.10
%
58.43
%
37.21
%
Non-
current
assets 0 0 0
Financial 0.5 0.5 0 -0.5 -0.5 0.00% - -

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assets at
fair value
through
profit or
loss
100.0
0%
100.00
%
Loans and
receivables 172.2 164.4 0
172.
2
164.
4
Investment
in equity
accounted
investment
s
108.4
5
112.9 378.8
5
358.4 4.45 270.
4
249.
95
4.10% 249.3
3%
230.47
%
Property,
plant and
equipment
394.6
5
414.1
5 453.3
503.3
5 19.5
58.6
5
108.
7 4.94%
14.86
%
27.54
%
Investment
properties 171
183.8
5
197.2
5 350.8
12.8
5
26.2
5
179.
8 7.51%
15.35
%
105.15
%
Intangible
assets
317.6
5
315.3
5 391.1 416.8 -2.3
73.4
5
99.1
5 -0.72%
23.12
%
31.21
%
Derivative
financial
instrument
s 2.8 0.75 -2.8 -2.8
-
2.05
-
100.00
%
-
100.0
0%
-
73.21
%
Other
assets 0.4 4.6 1.6 9.3 4.2 1.2 8.9
1050.0
0%
300.0
0%
2225.0
0%
Total non-
current
assets
995.4
5
1,031
.35
1,594
.30
1,803
.80 35.9
598.
85
808.
35 3.61%
60.16
%
81.20
%
Total
assets
1,151
.20
1,445
.80
1,841
.05
2,017
.50
294.
6
689.
85
866.
3
25.59
%
59.92
%
75.25
%
LIABILITIES
Current
liabilities
Trade and
other
payables 57.65 50.05 78 72.4 -7.6
20.3
5
14.7
5
-
13.18
%
35.30
%
25.59
%
Borrowings 6.15 0 0.4 0.85
-
6.15
-
5.75 -5.3
-
100.00
%
-
93.50
%
-
86.18
%
Current tax
payable 3.15 79.7 8.95
76.5
5
-
3.15 5.8
2430.1
6%
-
100.0
0%
184.13
%
Derivative 0.4 0.35 0.1 0.1 - -0.3 -0.3 - - -

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financial
instrument
s 0.05
12.50
%
75.00
%
75.00
%
Provisions 33.55 32.5 36 40.1
-
1.05 2.45 6.55 -3.13% 7.30%
19.52
%
Total
current
liabilities 100.9 162.6 114.5 122.4 61.7 13.6 21.5
61.15
%
13.48
%
21.31
%
Non-
current
liabilities 0 0 0
Trade and
other
payables 2.75 1.1 2.4 0.2
-
1.65
-
0.35
-
2.55
-
60.00
%
-
12.73
%
-
92.73
%
Borrowings
294.8
5 256.8
400.5
5
482.1
5
-
38.0
5
105.
7
187.
3
-
12.90
%
35.85
%
63.52
%
Deferred
tax
liabilities 0.75 12.7 32.4 0.75 12.7 32.4
Derivative
financial
instrument
s 1.15 1.25 0.25 0.45 0.1 -0.9 -0.7 8.70%
-
78.26
%
-
60.87
%
Provisions 7.4 4.65 4.35 4.85
-
2.75
-
3.05
-
2.55
-
37.16
%
-
41.22
%
-
34.46
%
Total non-
current
liabilities
306.1
5
264.5
5
420.2
5
520.0
5
-
41.6
114.
1
213.
9
-
13.59
%
37.27
%
69.87
%
Total
liabilities
407.0
5
427.1
5
534.7
5
642.4
5 20.1
127.
7
235.
4 4.94%
31.37
%
57.83
%
Net assets
744.1
5
1,018
.65
1,306
.30
1,375
.05
274.
5
562.
15
630.
9
36.89
%
75.54
%
84.78
%
EQUITY 0 0 0
Contribute
d equity
642.3
5 891.1
1225.
25
1227.
45
248.
75
582.
9
585.
1
38.72
%
90.74
%
91.09
%
Reserves
-
14.35 -4.8 -1.5 9.35 9.55
12.8
5 23.7
-
66.55
%
-
89.55
%
-
165.16
%
Retained
earnings 70.75 83.25 82.55 138.4 12.5 11.8
67.6
5
17.67
%
16.68
%
95.62
%
Capital and 698.7 969.5 1306. 1375. 270. 607. 676. 38.75 86.95 96.81

17
AUDITING AND ASSURANCE
STUDENT NAME
STUDENT NUMBER
reserves
attributable
to owners
of Dalby
Logistics
Limited 5 5 3 2 8 55 45 % % %
Non-
controlling
interests 45.4 49.1 -0.15 3.7
-
45.4
-
45.5
5 8.15%
-
100.0
0%
-
100.33
%
Total
equity
744.1
5
1,018
.65
1,306
.30
1,375
.05
274.
5
562.
15
630.
9
36.89
%
75.54
%
84.78
%
Key Ratio 2016 2017 2018
Liquidity
Current ratio:
Current assets 414.45 246.75 213.7
Current liabilities 162.6 114.5 122.4
Current assets/current liabilities 2.55 2.16 1.75
Efficiency ratio
Receivables turnover ratio
Sales 632.4 709.05 788.95
Average Receivables 106.2 125 154.25
Sales / average receivables 5.95 5.67 5.11
Days in receivable
365/receivable turnover ratio 61.30 64.35 71.36
Profitability ratio
Net profit ratio
Net profit 46.25 38.65 99.5
Revenues 632.4 709.05 788.95
Net profit/revenues 7.31% 5.45% 12.61%
Solvency ratio
Debt equity ratio
total liability 427.15 534.75 642.45
total equity 1,018.65 1,306.30
1,375.0
5

18
AUDITING AND ASSURANCE
STUDENT NAME
STUDENT NUMBER
total liability/total equity 0.42 0.41 0.47