Discuss the impact of the analytical review

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Question :

As the audit senior for Beachwear Pty Ltd, you have performed some analytical procedures as part of your planning for the year ended 30 June 2016 audit. A summary of the analytical procedures is shown below:


30 June 2016

30 June 2015

Current ratio



Debt-to-equity ratio



Times interest earned



Accounts receivable turnover (days)



Inventory turnover (days)



Return on sales (%)



Gross profit margin (%)




Discuss the impact of the above analytical review procedures on your audit plan for 30 June 2016.

[Note: You need to understand what is analytical procedures and how is this used in auditing. Each analytical procedure will be discussed individually and then there will be some general comments at the end.

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This is a 1000 words assignment which talks about the analytical procedures used in the auditing process. The current topic will cover a discussion over the outcomes of the analytical review procedures of an audit of the Beachwear Pty Ltd. The discussion will also include what analytical procedures were used for this audit along with how they were being used. The work is written in Microsoft word with APA style of referencing. It also caries incited references.

Reference no: EM131189363

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