Make an appropriate comment against the change computed below, indicating how th
ID: 2513406 • Letter: M
Question
Make an appropriate comment against the change computed below, indicating how the change will impact the audit risk assessment and the audit work to be done on that area.
2016
2015
% Change
$’000
$’000
INCOME / (EXPENSES)
Premiums
5,771,000
5,858,000
-1.49
Operating Expenses
(2,323,000)
(2,397,000)
-3.09
Claims Expenses
(3,710,000)
(3,843,000)
-3.46
Payroll Costs
(880,000)
(680,000)
29.41
Investment Income
856,000
851,000
0.59
Net Income
2,088,000
940,000
122.13
ASSETS/ (LIABILITIES)
Fixed Assets
941,000
1,064,000
-11.56
Investments
11,383.000
10,577,000
7.62
Outstanding Claim Settlement
(8,483,000)
(8,795,000)
-3.55
Shareholders’ Equity
(6,088,000)
(4,993,000)
21.93
2016
2015
% Change
$’000
$’000
INCOME / (EXPENSES)
Premiums
5,771,000
5,858,000
-1.49
Operating Expenses
(2,323,000)
(2,397,000)
-3.09
Claims Expenses
(3,710,000)
(3,843,000)
-3.46
Payroll Costs
(880,000)
(680,000)
29.41
Investment Income
856,000
851,000
0.59
Net Income
2,088,000
940,000
122.13
ASSETS/ (LIABILITIES)
Fixed Assets
941,000
1,064,000
-11.56
Investments
11,383.000
10,577,000
7.62
Outstanding Claim Settlement
(8,483,000)
(8,795,000)
-3.55
Shareholders’ Equity
(6,088,000)
(4,993,000)
21.93
Explanation / Answer
answer
Ratios 2016 2015 % change net margin 36.18 % 16.05% 125.42 % return on investment 16.94 % 8.07% 109.91%
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.