Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Forensic Accounting And Financial Statement Fraud Forensic Accounting Performance

Authors: Zabihollah Rezaee

1st Edition

1949991075, 978-1949991079

More Books

Students also viewed these Accounting questions

Question

Does your rate of speech speed up or slow down?

Answered: 1 week ago