FINANCIAL AUDIT II

Nama : Steven Orlando

NIM : 2101680546

Kelas : LB53

GSLC II

d. To determine significant differences in the ratios calculated for part a, I will use the simple
guideline of applying the 1% of total assets to the ratios. I am using this simple guideline because
many of the ratios do not seem to have a big difference between the two years. The only ratio that
seemed to have significantly change was the accounts receivable turnover from 2014 to 2015. It had
a change of more than 1.5% of total assets. Revenue growth is consistent with the industry because
in comparison to its competitors, it also experienced an increase of revenue from 2013 to 2014 and
a decrease from 2014 to 2015. Revenue has decreased in 2015, but its cash flows from operating
activities has also decreased.

e. One account that I would investigate further through substantive audit procedures is the cash
account because this account increased significantly by about $7,000 from 2014 to 2015. I would
also investigate further through substantive audit procedures for the revenue and cost of sales
account. Even though the gross margin was not impacted significantly by these two accounts, the
accounts standing alone seemed to have decreased somewhat significantly from 2013 to 2015.
Information that should be included in the auditor’s workpapers are: information about procedures
followed, information the auditor has obtained, tests that have been performed by the auditor, and
confirmations of accounts receivable balances.