You are auditing the financial statements of Pumpkin Co for the year ended 31 March 20019. Pumpkin Co is a chain of bakeries operating in 5 locations. The bakeries sell a range of cakes, pastries,bread, sandwiches and drinks which the customers purchase in cash. The company has had a challenging year, according to its directors and is renegotiating its bank overdraft facility with its bank. The income statement for the year ended 31 March 2008 is shown below together with the draft income statement for the year ended 31 March 2009.

31 March 09 31 Mar 08

Sales 4,205 3,764

COS (1,376) (1,555)

Gross profit 2,829 2,209

Admin (667) (798)

Selling (423) (460)

Interest (50) (49)

Profit 1,689 902

Required As part of your risk assessment procedures for the audit of Pumpkin Co, perform analytical procedures on the draft income statement to identify possible risk areas requiring further audit work.