关联账户:现金账户和存货账户。错报风险水平:股票和现金的挪用导致财务报表错报的可能性很高，这也吸引了重要性。断言/s:在这种情况下，应实现分类和截止断言。审计人员在审计过程中，应当更加重视对现金和存货的挪用分类。另一方面，被挪用的现金和股票需要由管理层进行识别和核算，并由审计师进行验证(Graham, 2015)。挪用现金、股票，应当在正确的会计期间记帐。关联账户:库存账户，零售商的返利和折扣。错报风险水平:财务报表中出现错报可能性的风险水平较高。在零售和批发业务中，回扣和折扣对业务的财务报表有重要影响。断言/s: Occurrence是审计时应该考虑的断言。因为很多账户都涉及到折扣和回扣。因此，审核员应检查任何少报或多报的金额。流动比率:反映本组织流动资金的流动性。
流动比率根据流动资产与流动负债的水平建立流动资产与流动负债之间的关系。在进行分析的过程中，可以看出Soundworld的流动性状况良好。流动比率和存货周转率较高，说明流动性水平较高(Spires, 2012)。偿债能力比率:偿债能力比率是指企业的债务和权益状况。负债权益比表明声世界有限公司的风险较高，因为其负债大于内部资金。另一方面，时间利息率是音世界有限公司的另一个担忧，因为他们没有足够的资金来履行他们的利息义务。盈利能力比率:这个比率表示组织的盈利能力。在分析过程中，人们注意到净利润一直在快速下降。这意味着更高的支出。因此，审核员应详细核实所有达到或超过重要性水平的费用。资产回报率表明Soundworld ltd的资产不足以盈利(Spires, 2012)。因此，审核员应详细检查此事项，并将其报告给负责治理的人员。
Associated account: Cash account and inventory account.Level of risk of misstatement: There is high level of likelihood that misappropriation of stock and cash will lead towards misstatement of financial statement and this also attracts materiality. Assertion/s: Inn this case, classification and cut-off assertions shall be implemented. During audit, auditors shall put more emphasis on classification of misappropriation of cash and stock. On the other hand, cash and stock which have been misappropriated are required to be identified and accounted by management and verified by auditor (Graham, 2015). Misappropriation of cash and stock shall be accounted in correct accounting period.Associated account: Inventory account and rebates and discount to retailers.Level of risk of misstatement: There will be high level of risk in terms of likelihood of misstatement in financial statement. In retail and wholesale business rebates and discount has material impact on financial statement of the business.Assertion/s: Occurrence is the assertion that shall be taken into account while auditing. Since many accounts have been involved under discount and rebate. Therefore, auditor shall examine any understatement or overstatement amount. Current ratio: It reflects liquidity in the working capital of the organization.
Current ratio establishes the relationship between current assets and current liabilities in terms of its level. While conducting analytical procedure, it can be observed that liquidity position of Soundworld is good. Current ratio and inventory turnover ratio is at higher side which shows high level of liquidity (Spires, 2012).Solvency Ratio: Solvency ratio indicates debt and equity position of the business organization. Debt to equity ratio indicates there is high level of risk in Soundworld ltd as its liabilities are more than its internal funds. On the other hand, time interest earned ratio is another worry for Soundworld ltd as they are not available with adequate funds to discharge their interest obligations.Profitability Ratio: This ratio indicates profitability of the organization. During analytical procedure, it has been noted that net profit margin has been at decline at fast rate. It suggests higher expenses. Therefore, auditor shall verify in detail all the expenses which reach or go beyond materiality level. Return on assets suggests that assets of Soundworld ltd are not adequate enough to earn profit (Spires, 2012). Therefore, auditor shall examine this matter in detail and report it to those charge with governance.