Please read document requirement and answer the question. I already did question1 part A and question 3. But i hope someone can help me check the calculation and use a paragraph to summarise the question part A and i don't know how to do the question 1 part B. Finally, question B is not good please fix my answer and there is no cope from website. thx

ASSIGNMENT Your firm has been approached by a listed company, ROB_PROB Limited (RBL), and asked if you will accept appointment as auditors for the year ending 31 December 2016 (it is now late November 2016). RBL's Finance Director provided you with the following statement of financial position and income statement information which included actual figures for years ending 31 December 2013 to 2015, with estimated figures for 2016. RBL produces gadgets. This was once a fairly profitable industry but both the size and profitability of the industry in Australia have declined significantly in recent years due to advanced technology and replacement products (which RBL is unable to produce with its existing plant and equipment). Over recent years a number of its competitors and customers have closed down and existing tariffs, quotas and import duties on imported gadgets have been scheduled to be abolished at the beginning of 2016. RBL's factory closed in late November, pending the resolution of an industrial dispute (factory workers demanding a 15% wage rise and reduced hours). It is unlikely that work will resume prior to the Christmas shutdown and consequently the estimated figures for 2016 are not, in the opinion of the Finance Director, expected to change. ROB_PROB LIMITED INCOME STATEMENT 2013 $'000 2014 $'000 2015 $'000 2016 $'000 112,500 90,000 2,000 750 2,400 115,875 98,494 2,000 750 2,000 108,923 98,031 2,000 750 1,800 92,584 86,103 2,000 750 1,500 1,850 1,850 1,850 1,850 15,500 10,781 4,492 381 Tax expense 6,045 4,204 1,752 149 NPAT 9,455 6,577 2,740 232 Revenue COGS Depreciation Amortisation Interest - Expense (net) Other expenses NPBT ROB_PROB LIMITED BALANCE SHEET AS AT 2013 $'000 2014 $'000 2015 $'000 2016 $'000 Current assets Cash Receivables Inventories Other 630 21,171 19,784 517 500 24,347 22,752 517 450 27,999 26,164 517 150 33,598 31,397 517 Total Current Assets 42,102 48,116 55,130 65,662 Non-Current assets Investments Property, plant & equipment Intangibles Other 87 25,921 15,349 1,115 87 23,977 14,582 1,115 87 22,179 13,852 1,115 87 20,515 13,160 1,115 Total Non Current Assets 42,472 39,761 37,233 34,877 Total assets 84,574 87,877 92,363 100,539 Current liabilities Creditors Borrowings Provisions 9,267 5,000 11,772 10,657 0 12,361 12,256 2,500 12,978 14,707 4,000 13,627 26,039 23,018 27,734 32,334 1,338 5,000 1,531 1,137 5,000 1,479 94 3,000 1,552 1,360 5,000 1,630 7,869 7,616 4,646 7,990 33,908 30,634 32,380 40,324 Non-current liabilities Creditors Borrowings Provisions Total liabilities Net assets 50,666 57,243 59,983 60,215 Shareholders, equity Share capital Reserves Retained profits 26,202 11,187 13,277 26,202 11,187 19,854 26,202 11,187 22,594 26,202 11,187 22,826 Total shareholders, equity 50,666 57,243 59,983 60,215 Required (A) The responsible partner for accepting new clients has requested you to prepare a preliminary analytical review on the information provided by RBL's Finance Director. The partner suggests that as a minimum you should provide him with the following information bearing in mind that any change above 10% is material. (A:1) Horizontal analysis for 2016 and 2015. (5 marks) (A:2) Calculate 2 liquidity ratios, 2 activity ratios, 4 profitability ratios and 2 solvency ratios over the period 2013 to 2016. Use the ratios to assess if the company has a going concern problem. (9 marks + 1 mark for presentation) (B) List four areas of high inherent risk based on your findings in (a) above and explain how they could affect the financial statements of 2016. (5 marks) ROB_PROB LIMITED INCOME STATEMENT 2013 $'000 2014 $'000 2015 $'000 2016 $'000 Change in amount 112,500 90,000 2,000 750 2,400 115,875 98,494 2,000 750 2,000 108,923 98,031 2,000 750 1,800 92,584 86,103 2,000 750 1,500 (15.000%) 1,850 1,850 1,850 1,850 N/ANPBT 15,500 10,781 4,492 381 (91.518%) ax expense 6,045 4,204 1,752 149 (91.500%) PAT 9,455 6,577 2,740 232 (91.533%) evenue OGS epreciation mortisation nterest - Expense (net) ther expenses 2013 $'000 Current assets 2014 $'000 2015 $'000 (12.16%) N/A N/A N/A 2016 $'000 Change in amount Cash Receivables Inventories Other 630 21,171 19,784 517 500 24,347 22,752 517 450 27,999 26,164 517 150 33,598 31,397 517 (66.667%) 19.997% 20.000% N/A Total Current Assets 42,102 48,116 55,130 65,662 Non-Current assets Investments Property, plant & equipment Intangibles Other 87 25,921 15,349 1,115 87 23,977 14,582 1,115 87 22,179 13,852 1,115 87 20,515 13,160 1,115 Total Non Current Assets 42,472 39,761 37,233 34,877 (6.328%) Total assets 84,574 87,877 92,363 100,539 8.852% Current liabilities Creditors Borrowings Provisions 9,267 5,000 11,772 10,657 0 12,361 12,256 2,500 12,978 14,707 4,000 13,627 26,039 23,018 27,734 32,334 1,338 5,000 1,531 1,137 5,000 1,479 94 3,000 1,552 1,360 5,000 1,630 7,869 7,616 4,646 7,990 Total liabilities 33,908 30,634 32,380 40,324 24.536% Net assets 50,666 57,243 59,983 60,215 0.387% Shareholders, equity Share capital Reserves Retained profits 26,202 11,187 13,277 26,202 11,187 19,854 26,202 11,187 22,594 26,202 11,187 22,826 Non-current liabilities Creditors Borrowings Provisions 19.104% (7.502%) (4.996%) 16.586% N/A N/A 1.027% Total shareholders, equity 50,666 57,243 59,983 60,215 0.387% Q:B Firstlythe information technology (IT) increases inherent risk, because RBL cannot adapt significant change in IT. According to above income statement, RBL revenue has declined from $108923 to $92584 between 2015 and 2016. Thus, RBL are losing its client because its lag in technology due to that RBL is unable to produce with its existing plant and equipment. The amount of capital investment necessary may increase as a result of technological change, but RBL hold constant investment $87 every year so that RBL does not improve its information technology. The information technology is also relative to the ability of RBL to continue as a going concern. Therefore, RBL has to develop its information technology in order to follow industry progress. Secondly, changing in tariffs, quotas and import duties increases inherent risk. As a number of RBL competitors and customers have closed down over recent years, changing in economic and competitive conditions would cause high inherent risk for RBL. The tariffs, quotas and import duties be abolished at the beginning of 2016, which may be a pressure that RBL more difficult to attract client and make sale profit. Thirdly, as data listed in Horizontal analysis for 2016 and 2015, it can be found that debt of RBL increase much more (total liability is $32380,000 in 2015 and $40324,000 in 2016) while the equity almost not change (total equity is $59983,000 in 2015 and $60215,000 in 2016). So, the proportion of debt increases and that could lead to earnings risk increases. Another significant factor existing cannot be ignored is management risk. Workers of RBL is going on strike to protest so that the factory cannot working normally. The reasons of it might occur in management decisions and it would bring much pressure on management which belongs to unusual pressure. All these factors can increase the inherent risk and can have a great effect on the financial statements of 2016. For example, management and operating problems in RBL can decrease the income and entity also debt, the investors of RBL might withdraw the investment because of foreseeable operational risks and bad returns, which have continued impact on earnings and revenues and then produce more pressure on company, resulting in a vicious circle