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Which Analytical Procedure Would Be Most Helpful in Alerting the Auditor

Question 28

Multiple Choice

Which analytical procedure would be most helpful in alerting the auditor to the possibility of obsolete inventory? Compare


A) current year manufacturing costs with previous years' costs.
B) gross margin percentage with previous years' percentages.
C) inventory turnover ratio with previous years' ratios.
D) unit costs of inventory with previous years' costs.

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