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.
Correct Answer:

Verified
Correct Answer:
Verified
Q23: Commission expense is calculated as a percentage
Q24: State five specific balance-related audit objectives for
Q25: The total of the individual employee earnings
Q26: The audit procedure 'observe whether inventory movement
Q29: Which document indicates a reduction in the
Q30: The test of transactions, which requires 'compare
Q31: Which one of the following internal accounting
Q32: When labour is a significant part of
Q33: When the client's physical inventory takes place
Q36: When the client's perpetual inventory master files