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In order to determine how risky a particular company is that you are auditing, you prepare these five ratios along with the same ratios of
In order to determine how risky a particular company is that you are auditing, you prepare these five ratios along with the same ratios of this company peer's:
Company
Peers
Day's sales in receivable index
1.51
1.05
Gross margin index
1.98
1.11
Asset Quality Index
1.21
1.01
Sales Growth Index
1.53
1.19
Total Accrual to total Assets
0.11
0.06
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