[11. Planning You are the auditor of Huckleberry Hound Ltd (HHL), a distributor of pet supplies. Using the company's financial report, its budget for the year under review and industry benchmarks, as well as your understanding of the entity, you have compiled the following information: - HHL operates in an environment where large volumes are required to cover overhead costs and generate profits. This means overheads need to be kept under control to ensure its operations generate a net profit. . HHL did not reach industry benchmarks with regard to profitability in the previous year, and budgeted to better this in the current year. HHL's intended strategy was to keep its costs down in relation to sales, while allowing its gross profit ratio to drop, and plan to generate a large volume of sales. a The company also planned to reduce levels of inventory and accounts receivable to improve its working capital position. Ratio Current Year industry Current ratio 1.46 1.55 Quick asset ratio 0.25 -m 0.63 Times interest earned ratio 6.21 m_ 6.63 Debt to equity ratio 0.49 0.46 Days in inventory 39.56 21.56 Days in receivables 51.23 46.25 Gross profit ratio 96 EDD 8.13 Admin. expensesJSales 96 3.42 1.63 Marketing expensesyr'Sales '36 1.D2 1.?D Reguired: a. List two ratio results from the table above that the auditor would be particularly interested in when planning the audit of HHL. Explain why you chose these ratio results. b. For each ratio you listed in part {a} indicate what general ledger account is primarily affected. c. For each ratio you listed in part {a} indicate which assertion [or assertions} isfare most at risk. Explain why the assertionls} More at risk