Complete the table above for changes in the items noted. Make an appropriate comment against the change computed, indicating how the change will impact the audit risk assessment and the audit work to be done on that area (20 marks)

CALCULATE THE NET MARGIN AND RETURN IN INVESTMENT (ROI). Show workings.

	2016	2015	% Change
	$000	$000
INCOME / (EXPENSES)
Premiums	5,771,000	5,858,000	-1.49
Operating Expenses	(2,323,000)	(2,397,000)	-3.09
Claims Expenses	(3,710,000)	(3,843,000)	-3.46
Payroll Costs	(880,000)	(680,000)	29.41
Investment Income	856,000	851,000	0.59
Net Income	2,088,000	940,000	122.13
ASSETS/ (LIABILITIES)
Fixed Assets	941,000	1,064,000	-11.56
Investments	11,383.000	10,577,000	7.62
Outstanding Claim Settlement	(8,483,000)	(8,795,000)	-3.55
Shareholders Equity	(6,088,000)	(4,993,000)	21.93
RATIOS
Net Margin
Return on Investment