a percentage s6 8-30 (Objectives 8-3,8-7, 8-8) You've been asked to review the gross ma ed El agr Bookshop for the years 2009 through 2012. You find therse decline during this time. Here are the numbers: 2011 2010 2012 uS$47 175 US$41039 U$37.073 US$44,039 Sales (thousands) CGS (thousands) 27.998 US$16,04 23.43 US$13,642 30,314 US$16,86 35.7 Gross margin Your discussion with Mohamed Lotfy, the controller, brings to lightt explanations. He informs you that the industry gross profit percent in the t ossa industry declined fairly steadily for three years as more people purchase bol bo which accounts for part of the decline. He also believes that online shoppi bookstores prevent the company from rapidly expanding its non-book iteu azines, candy, music, DVDs, and many other items sold. Lotfy feels strongly that g factors are the cause of the decline. 0 ping and ese two The following additional information is obtained from independent sou client's records as a means of investigating the controllers explanations: rces and El-Fagr Bookshop (USS in thousands) Book Cost of Goods Soldof Goods Soid Non-Book Non-Book Cost Retailers of B Year Book Sales Sales Related Products US$17,145 2012 US$21,500 US$25,675 US$13,169 2011 2010 2009 20,472 17.851 16,995 23,567 19.222 8,040 12.197 0,543 996 15,801 2,888 12.11 39.8 39.9 40.0 40.4 Required a. Evaluate the explanation provided by Lotfy. Show calculations to support your conclusions. b. Which specific aspects of the client's financial statements require intensive investig- tion in this audit