Blue Ltd is in the computer sales business. Blues auditor has conducted an analysis of the unaudited

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Blue Ltd is in the computer sales business. Blue’s auditor has conducted an analysis of the unaudited figures in preparation for setting the audit strategy. The calculations reveal that inventories turnover is lower this year than last, even more than the auditor expected given the additional competition in Blue’s main markets.


Required

Explain how the turnover ratio analysis would affect the audit strategy for Blue.

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Related Book For  book-img-for-question

Auditing A Practical Approach

ISBN: 9780730364573

3rd Edition

Authors: Robyn Moroney, Fiona Campbell, Jane Hamilton

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