If the auditor needs a high level of assurance, then the auditor shall make the tolerable error as low as possible to verify every data. The type of analytical procedures to be used is based on a total judgment of a professional. The above is the preliminary analytical procedures performed by us as per the financial position and income statement received of telechubbies ltd. The G.P. Ratio of the company is maintained during the past years. The G.P. Ratio is to be calculated by Gross Profit /Sales. But the N.P. Ratio has significantly fallen over the years from 8% to 3% in two years.