1 10 points You are the audit senior on the audit of Jubilee Rise Limited, a large manufacturer of gluten free products, which began operations in March 2018. This is the first year in which your firm has performed the audit. As part of the planning work, you have performed analytical procedures on an annualised basis and compared the results to industry averages and last year's audited financial information. The results are given below: Ratio: 1 Current ratio 2 Receivables turnover ratio 3 Inventory turnover ratio 4 Return on total assets 5 Net profit ratio Required: Industry Average Jubilee Rise Limited 2022 2021 2022 2021 2.54 3.72 1.76 2.52 4.9 4.6 5.3 8.0 3.7 3.8 4.8 5.5 7% 5% 13% 11% 0.05 0.06 0.03 0.04 For each of the above ratios: a. Explain their general meaning. (2.5 marks) b. Discuss the conclusions that you can draw about Jubilee Rise's financial position and identify potential audit risks to be investigated further. (7.5 marks) In the answer box below, write the letter and your answer. e.g. a. Your answer Consider using the following table format to provide your answers: What the ratin mesne Conclusinne ta draw Dotential rieke ta ha investiastad wort 5. Net profit Required: For each of the above ratios: a. Explain their general meaning (2.5 marks) b. Discuss the conclusions that you can draw about Jubilee Rise's financial position and identify potential audit risks to be investigated further. (7.5 marks) In the answer box below, write the letter and your answer. eg. a. Your answer Consider using the following table format to provide your answers: 1. 2. 3. 4. 5. What the ratio means Conclusions to draw Potential risks to be investigated To create a table in your answer, click on the table icon in the edit menu bar. If the second row of icons is not present click on the 3 dots at the end of the first row to open the next row of icons. v I m B FM #