By reference to requirement 1, identify the areas that are subject to increased audit risk and describe the further audit work you would perform in response to those risks.

Analita specializes in the development of electronic components within quite a competitive environment causing concerns for marketing and pricing. Its non-current assets primarily include IT software, property, and investments, and there have been additions to these during the year. As audit manager, you are conducting a preliminary analytical review and associated risk analysis for this client for the year ended June 30 2019. You have been presented with the following draft financial information about Analita with incomplete ratios and percentages calculation. Accounting ratios and percentages Earnings per share 0.54 Performance ratios include the following: Gross margin ((Gross profit/revenue) ? ? Expenses as a percentage of revenue: Distribution costs Administrative expenses Selling expenses ?????? Operating profit as a percentage of revenue