QUESTION 1 An independent review does not give the same level of assurance as an audit. It is however still an assurance engagement on which reliance is placed and must be carried out in terms of the international standard (ISRE 2400). In a review engagement, the practitioner performs primarily inquiry and analytical procedures. Clarke Limited manufactures and specialises in men's clothing and is listed on the Johannesburg Stock Exchange (JSE). The Head Office and manufacturing plant of Clarke Limited is situated in Gqeberha, in the Eastern Cape. The following is an extract of the financial information of Clarke Limited as at 28 February 2022. \begin{tabular}{|l|r|r|} \hline Quick-asset ratio & 0.85:1 & 1.6:1 \\ \hline Inventory turnover rate & 3 times & 4.5 times \\ \hline Sales & 17440000 & 16850000 \\ \hline Purchases & (12382400) & (9436000) \\ \hline Cost of Sales & (5157600) & (7414000) \\ \hline Sundry Income & 20503 & 16564 \\ \hline Insurance & (99500) & (92000) \\ \hline Advertisement & (90250) & (81369) \\ \hline Delivery expenses & (889456) & (254000) \\ \hline Bank charges & (58147) & (23128) \\ \hline Taxation & (129753) & (57159) \\ \hline Salary and wages & (4559753) & (3987654) \\ \hline Legal costs & (25750) & (38000) \\ \hline Depreciation & (118520) & (89150) \\ \hline \end{tabular} 1.2 Perform review procedures (without the use of your calculator) and identify the most important accounts/areas that you would focus on during the audit of Clarke Enterprise for the 2022 year-end audit. Structure your answer by identifying the account that you would focus on during the audit and then provide the review procedures that you will perform. (18 marks) QUESTION 1 An independent review does not give the same level of assurance as an audit. It is however still an assurance engagement on which reliance is placed and must be carried out in terms of the international standard (ISRE 2400). In a review engagement, the practitioner performs primarily inquiry and analytical procedures. Clarke Limited manufactures and specialises in men's clothing and is listed on the Johannesburg Stock Exchange (JSE). The Head Office and manufacturing plant of Clarke Limited is situated in Gqeberha, in the Eastern Cape. The following is an extract of the financial information of Clarke Limited as at 28 February 2022. \begin{tabular}{|l|r|r|} \hline Quick-asset ratio & 0.85:1 & 1.6:1 \\ \hline Inventory turnover rate & 3 times & 4.5 times \\ \hline Sales & 17440000 & 16850000 \\ \hline Purchases & (12382400) & (9436000) \\ \hline Cost of Sales & (5157600) & (7414000) \\ \hline Sundry Income & 20503 & 16564 \\ \hline Insurance & (99500) & (92000) \\ \hline Advertisement & (90250) & (81369) \\ \hline Delivery expenses & (889456) & (254000) \\ \hline Bank charges & (58147) & (23128) \\ \hline Taxation & (129753) & (57159) \\ \hline Salary and wages & (4559753) & (3987654) \\ \hline Legal costs & (25750) & (38000) \\ \hline Depreciation & (118520) & (89150) \\ \hline \end{tabular} 1.2 Perform review procedures (without the use of your calculator) and identify the most important accounts/areas that you would focus on during the audit of Clarke Enterprise for the 2022 year-end audit. Structure your answer by identifying the account that you would focus on during the audit and then provide the review procedures that you will perform. (18 marks)