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Analyze the income statement for any potential risk factors and compliance issues with Generally Accepted Accounting Principles (GAAP) or International Financial Recording Standards (IFRS). B.

Analyze the income statement for any potential risk factors and compliance issues with Generally Accepted Accounting Principles (GAAP) or International Financial Recording Standards (IFRS). B. Analyze the risk factors and compliance issues with GAAP or IFRS on the balance sheet. C. Using the internal control, analyze the cash and revenue for potential risk factors. 1. What risks need to be documented? 2. How does this information compare to the company or industry averages, or the companys past performance? D. Explain the audit universe and how you identified it. E. Based on your analysis of risk, devise a sampling program for the audit universe. F. Choose the most preferable audit testing procedures that could be used in the field, based on the audit universe items sampled in this situation.

Income Statement

All numbers in thousands

Revenue 1/31/2018 1/31/2017 1/31/2016 1/31/2015
Total Revenue 500,343,000 485,873,000 482,130,000 485,651,000
Cost of Revenue 373,396,000 361,256,000 360,984,000 365,086,000
Gross Profit 126,947,000 124,617,000 121,146,000 120,565,000
Operating Expenses
Research Development - - - -
Selling General and Administrative 104,698,000 101,853,000 97,041,000 93,418,000
Non Recurring - - - -
Others - - - -
Total Operating Expenses 478,094,000 463,109,000 458,025,000 458,504,000
Operating Income or Loss 22,249,000 22,764,000 24,105,000 27,147,000
Income from Continuing Operations
Total Other Income/Expenses Net -7,126,000 -2,267,000 -2,467,000 -2,348,000
Earnings Before Interest and Taxes 22,249,000 22,764,000 24,105,000 27,147,000
Interest Expense -2,330,000 -2,367,000 -2,548,000 -2,461,000
Income Before Tax 15,123,000 20,497,000 21,638,000 24,799,000
Income Tax Expense 4,600,000 6,204,000 6,558,000 7,985,000
Minority Interest 2,953,000 2,737,000 3,065,000 4,543,000
Net Income From Continuing Ops 10,523,000 14,293,000 15,080,000 16,814,000
Non-recurring Events
Discontinued Operations - - - 285,000
Extraordinary Items - - - -
Effect Of Accounting Changes - - - -
Other Items - - - -
Net Income
Net Income 9,862,000 13,643,000 14,694,000 16,363,000
Preferred Stock And Other Adjustments - - - -
Net Income Applicable To Common Shares 9,862,000 13,643,000 14,694,000

16,363,000

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