The audit firm Willem & Partners Co is planning a statutory audit of Johnson & Smith Co (the company) for the year ended 31 December 2022. The company produces printers and has been a client of Willem & Partners Co for three years. The companys management was disappointed with the 2021 results and so in 2022 undertook a number of strategies to improve the trading results. This included the introduction of a generous sales-related bonus scheme for their salesmen and a high profile advertising campaign. In addition, as market conditions are difficult for their customers, they have extended the credit period given to them. The salesmen were responsible for extending the credit periods to the customer; no authorization of the sales manager was required. The company only reconciles the sales ledger control account at the end of September in order to verify the year-end balance. During the year the directors of the company have been paid significant bonus, and they have included this within wages and salaries. Separate disclosure of the bonus is required by local legislation. The finance director of Johnson & Smith Co has reviewed the inventory valuation policy and has included additional overheads incurred in 2022 as he considers them to be production related. He is happy with the 2022 results and feels that they are a good reflection of the improved trading levels. The Willem & Partners Co will perform statutory audit for year ending 31 December 2022 for Advanced Technologies Co, which is also producing computers and is in direct competition with Johnson & Smith Co. Willem & Partners Co are planning to update the printers in their office. Johnson & Smith Co offered to give the required printers to Willem & Partners Co without a charge. In addition, the company has outstanding audit fees related to the last year audit engagement. 20% of the total fee is still due. Draft Financial Statements of Johnson & Smith Co for year ending 31 December 2022 is provided below:

Performed analytical procedures on the draft financial statements of Murray Co and explained the audit risks that arose. (Please use ration analysis).

\begin{tabular}{|c|c|c|} \hline & 2022 & 2021 \\ \hline & \begin{tabular}{r} in thousand \\ USD \end{tabular} & \begin{tabular}{r} in thousand \\ USD \end{tabular} \\ \hline \multicolumn{3}{|l|}{ Non-current assets } \\ \hline PPE & 4,500 & 5,000 \\ \hline Total non-current assets & 4,500 & 5,000 \\ \hline \multicolumn{3}{|l|}{ Current assets } \\ \hline Inventory & 2,292 & 1,600 \\ \hline Trade receivables & 5,700 & 3,000 \\ \hline Cash and cash equivalents & 2,031 & 2,300 \\ \hline Total current assets & 10,023 & 6,900 \\ \hline Total assets & 14,523 & 11,900 \\ \hline \multicolumn{3}{|l|}{ Liabilities and equity } \\ \hline \multicolumn{3}{|l|}{ Equity } \\ \hline Share capital & 1,500 & 1,500 \\ \hline Retained Earnings & 2,363 & 2,000 \\ \hline Total Equity & 3,863 & 3,500 \\ \hline \end{tabular} Draft Statement of Profit and Loss for the year ended 31 December 2022