2.In addition to the analytical procedures already listed in the memo, analyze an additional four that are useful in the planning process for the EarthWear audit. Discuss the meaning of the analytical procedures included and how they may affect your auditplan/procedures.Work Paper 3-6and the Common SizeBalance SheetandIncome Statementfor EarthWear have been provided to assist you.

EarthWear's Gross Profit Percentage is 43.90% and the industry average is 38.80%

Discuss the meaning of the analytical procedure and how it may affect risks relating to the EarthWear audit or your planned audit procedures.

EarthWear's Debt to Equity ratio is 0.50 and the industry average is 0.84

Discuss the meaning of the analytical procedure and how it may affect risks relating to the EarthWear audit or your planned audit procedures.