The following data was taken from the production and accounting records for Casuccio Manufacturing, Inc.

Unaudited Audited Audited

2023 2022 2021

Operating Data

Capacity in units 450,000 450,000 450,000

Production in units 450,000 400,000 300,000

Inventory in units 32,000 28,000 21,000

Financial Data ($000)

Total revenues $35,200 $27,500 $21,200

Total assets $23,000 $19,500 $15,700

Accounts receivable, net $5,900 $4,300 $3,900

Bad debt expense $175 $135 $105

Accounts receivable written off $165 $125 $100

A. Calculate the following ratios for 2023, 2022, and 2021:

1. Sales to total assets.
2. Sales to production.
3. Revenue per unit sold.
4. Accounts receivable growth to sales growth.
5. Uncollectible accounts expense to net credit sales.
6. Uncollectible accounts expense to accounts receivable written off.
7. Accounts receivable turnover in days.

B. 1. Describe the implications of the resulting ratios for the auditor's audit strategy for the year 2023.

2.What specific assertions are likely to be misstated?

3.How should the auditor respond in terms of potential audit tests?