part b

estion 2- Analytical procedure Define analytical procedures and give the basic prernise of using them. (1 mark) You are provided the following ratios for an audit client Ratios 1 Gross Margin 2 Operating Margin 3 Current 4 Quick 2014 18% 10% 3.2:1 2.6:1 63 61 25 2013 18% 7% 1.4:1 0.8:1 58 48 69 5 Inventory days 6 Receivable days 7Purchases days Required: Identify the major conclusions that can be drawn from the above information about the company's performance in 2014 (Tip - Do not simply state the percentage change or lack of change, but rather what it could mean). (14 marks) Describe the FIVE types of analytical procedures