Identify what will give rise to these possible misstatements

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Question

You have just graduated and have been offered a junior accountants position at LTC accountants. This is your first job and you would like to impress your manager, your manager has requested you to assist him in the latest risk assessment for WDL (one of LTC largest client), who uses a periodic inventory system.

Your manager has requested you to calculate the gross profit margin for this year which is 60% compared to 45% from previous year. Based on your analysis, your manager asked you to comment on which accounts could be a risk of material misstatement and identify what will give rise to these possible misstatements?

Reference no: EM132363380

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