Research Myer to gain an understanding of the client. You can use Internet research (e.g. business and financial media articles), IBIS World Industry Reports and the other information in the annual reports. It is essential to reference all sources with in-text referencing and a reference list. From your research, you need to:

1.1. Provide a brief summary of the client.

1.2. Identify and assess business risks for Myer related to industry, regulatory and

other external factors.

1.3. Identify and assess business risks for Myer related to the nature of the entity

and its operations.

2. Perform a preliminary analytical review

Perform preliminary analytical procedures on Myer's financial statements (note: source the 2019 & 2018 figures from the 2019 report, 2017 figures from the 2018 report and 2016 figures from the 2017 report).

You need to:

2.1 Perform trend analysis for four years (2016-2019) on the following ten line items from the Income Statement:

Revenue from sale of goods

Other operating revenue

Cost of goods sold

Gross operating profit

Selling expenses

Administration expenses

Restructuring, exist costs, impairment, etc.

EBIT

Finance costs

Net profit after tax

2.2 Interpret the results of your trend analysis in part 2.1 above, focusing on the audit implications.

2.3 Calculate the following nine financial ratios for 2019, 2018 and 2017. For each ratio, show the numbers used in the formula as well as your final answer:

2.3.1 Gross profit ratio (profitability)

2.3.2 Net profit ratio (profitability)

2.3.3 Return on assets (profitability)

2.3.4 Return on equity (profitability)

2.3.5 Days in inventory (efficiency)

2.3.6 Current ratio (liquidity)

2.3.7 Quick ratio (liquidity)

2.3.8 Debt to equity ratio (solvency)

2.3.9 Times interest earned (solvency)

2.4 Interpret the results of your ratio analysis in part 2.3 above, focusing on the audit implications.