Q1) Perform the analytical procedure (ratio analyses) by commenting on the below ratios for Harris Technology Group LTD calculated for the financial year 2019, in comparison with ratios in 2018 (6 marks). Identify and explain how the ratio analyses may have impacted on the assessment of inherent risk and influenced the audit plan.

Ratio 2019 2018 Current ratio 1,796,321/3,530,976 = 0.51 12,996,434/12,470,234 = 1.04 Quick Asset 1,391,108/3,530,976 = 0.39 6,654,878/12,470,234 = 0.53 Debt/Equity 7,260,850/ (5,063,008) = -1.43 16,649,180/(2,919,908) = -5.70 Net Profit [(2,202,649)/9,003,268] *100 [(2,202,064)/11,513,394)*100 = -24.46% = 19.13% Return on Equity (2,202,649)/ (5,063,008) = 0.44 (2,202,064)/ (2,919,908) = 0.75