Multiple Choice
Auditors sometimes use comparison of ratios as audit evidence. For example, an unexplained decrease in the ratio of gross profit to sales may suggest which of the following possibilities?
A) Unrecorded sales.
B) Merchandise purchases charged to selling and general expense.
C) Fictitious sales.
D) Unrecorded purchases.
Correct Answer:

Verified
Correct Answer:
Verified
Q8: The scope and nature of an auditor's
Q8: A prospective client's refusal to give permission
Q9: When an auditor is approached to perform
Q10: Which of the following is not a
Q11: An example of an analytical procedure is
Q16: Which of the following tends to be
Q22: Analytical procedures used in planning an audit
Q35: The auditor is most likely to rely
Q40: An auditor who finds that the client
Q45: Analytical procedures are:<br>A)never required.<br>B)required for planning, substantive