QUESTION Maybros Fashion Shops own a chain of shops in major towns, Kenya. Each shop is operated by a separate subsidiary company. All subsidiaries buy from the parent. The Fraud Auditors have received the accounts for Maylux shop for the year ending 31 December 2018 before starting the fraud audit These reveal (in extract): Turnover Cost of Sales Gross Profit Wages Overheads Net Profit Stock Creditors 2018 Kshs'000 6000 4000 2000 780 700 520 580 710 2017 Kshs'000 6380 4590 1790 710 750 330 530 790 Budget 2019 Kshs'000 6400 4250 2150 700 740 710 620 740 External data known to the fraud auditors include: I. Rate of inflation 5% A university survey, found on the internet, of the traders in the area in which the shop is situated indicates a 5% growth in real terms. 3. The rate of gross profit achieved by other shops in the group was 345% and average stock was 45 days' worth. 4. Creditor days in three other shops averaged 65 days. 5. Wages in the other shops averaged 13% of turnover. From the above information, and using analytical procedures, highlight areas of audit emphasis in Maylux shop for the year 2018. QUESTION Maybros Fashion Shops own a chain of shops in major towns, Kenya. Each shop is operated by a separate subsidiary company. All subsidiaries buy from the parent. The Fraud Auditors have received the accounts for Maylux shop for the year ending 31 December 2018 before starting the fraud audit These reveal (in extract): Turnover Cost of Sales Gross Profit Wages Overheads Net Profit Stock Creditors 2018 Kshs'000 6000 4000 2000 780 700 520 580 710 2017 Kshs'000 6380 4590 1790 710 750 330 530 790 Budget 2019 Kshs'000 6400 4250 2150 700 740 710 620 740 External data known to the fraud auditors include: I. Rate of inflation 5% A university survey, found on the internet, of the traders in the area in which the shop is situated indicates a 5% growth in real terms. 3. The rate of gross profit achieved by other shops in the group was 345% and average stock was 45 days' worth. 4. Creditor days in three other shops averaged 65 days. 5. Wages in the other shops averaged 13% of turnover. From the above information, and using analytical procedures, highlight areas of audit emphasis in Maylux shop for the year 2018