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Which One of the Following Substantive Analytical Procedures Would Be

Question 126

Multiple Choice

Which one of the following substantive analytical procedures would be most useful in alerting the auditor to the possibility of obsolete inventory?


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

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