Question 1 You are the audit senior on the audit of Freezair, a medium sized manufacturer of large freezers. This is the first year your firm has performed the audit. As part of the planning work, you have performed analytical procedures on an annualized basis and compared the results to industry averages and last year's audited financial information. The results are given below: Ratio Freezair Industry Average 2020 2019 2018 2017 2020 Current ratio 1.30 2.10 2.30 2.50 2.50 Days in receivable 83 65 60 57 61 Inventory turnover ratio 3.0 4.2 5.2 5.2 5.0 Debt to equity ratio 46% 35% 30% 28% 28% Gross margin 45% 33% 40% 40% 40% Required: (a) Identify business risks related to Freezair's operations (b) Discuss the conclusions that you can draw from the above ratios about Freezair's financial position. (c) Identify potential audit risks to be investigated further in light of the ratios