As a Result of Analytical Procedures, the Independent Auditor Determines

Multiple Choice

As a result of analytical procedures, the independent auditor determines that the gross profit percentage has declined from 30% in the preceding year to 20% in the current year. The auditor should:

A) express an opinion that is modified due to the inability of the client company to continue as a going concern.
B) evaluate management's performance in causing this decline.
C) require footnote disclosure.
D) consider the possibility of an error in the financial report.