You are the audit senior ot' Pran Er Partners [Chartered AccountanE} and are responsible to provide a report to the audit Manager on the risks related to these two new clients. The data above is a summary of the preliminaryT analytical review results conducted by an audit trainee for the two client companies for four years. Some of these lie}:r ratios are important to identifj.r and assess Iisk[s) related to the audiE of these two dients. Required: Provide a detailed report to the Audit Manager covering the following questions: {1} Discuss the importance of risk identication and assessment for both companies. [3 marks} (2] Based on the ratios analyses calculated by the audit trainee, identify the areas in the nancial statement where you believe there are risk concerns. Also state whether the risks relate to control or inherent risk or both. Provide reasons for your choice. i Ill