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Assume that you work for an audit firm which is considering to audit Funtastic Limited, an ASX-listed company. The 2017 Annual Report of Funtastic Limited can be accede using the following link. The audit firm you work for has never audited a legal firm in the past.
Perform ratio analysis and relevant comparisons as part of your planning analytical procedures to identify significant issues or results of the business that require detailed investigation and explanation. The analytical procedures should cover profitability, liquidity and solvency. It is totally up to you to determine the relevant ratios and calculations. Discuss the effect of your preliminary analytical review on your audit plan. Worth 10 Marks

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