Please answer a and b. Thank you

QUESTION 3 (Analytical procedures) The following financial ratios have been calculated for Nova Ltd for the year ended 30 June 2017: Actual results 1.97 BudgetedPrevious results 1.92 Industry average 1.92 year Current ratio Quick asset ratio Inventory turnover Net profit ratio Gross margin 1.87 1.06 4.86 0.03 0.61 1.11 4.76 0.03 0.61 1.06 1.06 4.21 0.05 4.91 0.03 0.65 0.59 REQUIRED: (a) Explain THREE different stages of an audit when analytical procedures can be used by the auditor. In which stage have these above financial ratios been calculated for? (4 marks) (b) Provide possible explanations for the results for the FOUR (4) ratios for Nova Ltd and outline their implications for the audit (8 marks)