Draft FIVE (5) questions you should make of the management of Kurt that will assist in the Analytical Procedures based on of the information given above.
Draft FIVE (5) questions you should make of the management of Kurt that will assist in the Analytical Procedures based on of the information given above.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Question 1
You are the audit senior assigned to audit the financial statements of Kurt Sdn Bhd (Kurt) for
the ended 31 March 2021. Kurt distribute a range of frozen seafood to supermarkets throughout
Malaysia and Singapore. Supermarkets are invoiced in their local currency. In the six months
to 31 March 2021, Kurt opened a number of its own retail outlets in the Klang Valley selling
directly to the public and has increased the production of processed seafood using spare
capacity in its factory. Your preliminary analytical procedures have identified the following as
matters of significance to discuss with management:
2021 (Draft)
19%
2020 Actual
Increase in revenue
8%
Gross profit margin
35%
29%
Operating margin
15%
22%
Required:
Draft FIVE (5) questions you should make of the management of Kurt that will assist in the
Analytical Procedures based on of the information given above.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd3ed39a6-c563-4e3a-aacb-bf57ce8c2699%2Fe9576ca7-598b-426d-9724-01ec4757447e%2Fckkzr9v_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 1
You are the audit senior assigned to audit the financial statements of Kurt Sdn Bhd (Kurt) for
the ended 31 March 2021. Kurt distribute a range of frozen seafood to supermarkets throughout
Malaysia and Singapore. Supermarkets are invoiced in their local currency. In the six months
to 31 March 2021, Kurt opened a number of its own retail outlets in the Klang Valley selling
directly to the public and has increased the production of processed seafood using spare
capacity in its factory. Your preliminary analytical procedures have identified the following as
matters of significance to discuss with management:
2021 (Draft)
19%
2020 Actual
Increase in revenue
8%
Gross profit margin
35%
29%
Operating margin
15%
22%
Required:
Draft FIVE (5) questions you should make of the management of Kurt that will assist in the
Analytical Procedures based on of the information given above.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education