Solve the below problem:
Q: The purpose is to perform preliminary analytical procedures as part of the audit planning process. You have been asked to focus your attention on two purposes of analyti-cal procedures: obtain an understanding about the client's business and indicate where there is an increased likelihood of misstatements. Required a. Refer to the financial statement data for the current year and prior two years.
Analyze the year-to-year change in account balance for at least five financial statement line items. Document the trend analysis in a format similar to the following: % Change % Change Account Balance 2010-2011 2009-2010
Net sales b. Calculate at least five common ratios shown on pages 232-233 and document them in a format similar to the following: Ratio 2011 2010 2009
Current ratio c. Based on the analytical procedures calculated in parts a. and b., summarize your observations about Pinnacle's business, including your assessment of the client's business risk.
Attachment:- Pinnacle Manufacturing Financial statements.rar