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You are the auditor of a fictional company Jones Manufacturing. You provided with the data below that shows results of the past two periods of

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You are the auditor of a fictional company Jones Manufacturing. You provided with the data below that shows results of the past two periods of results and a comparison with industry data for the same period. You are told the clients performance level is expected to be similar for both periods. From the data above please identify any potential risks areas for the client and advise the client why you believe they represent potential risk. How does the risk analysis determine how you should plan the audit engagement

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