This individual assignment report focuses on audit, assurance, and compliance, providing a detailed analysis of financial statements. The report begins with an analysis of various financial ratios, including current ratio, quick ratio, and inventory turnover, evaluating their trends over a three-year period and assessing their audit implications. The second part of the report delves into inherent risks, identifying potential misstatements related to inventory valuation and e-book revenue recognition. The report highlights complexities in transaction recording and revenue allocation. The final section addresses fraud risks, specifically examining cash receipt processes and the implementation of a new IT system, along with their impact on the audit process. The report provides a thorough examination of audit procedures, risk assessment, and compliance considerations.