As a Result of Analytical Procedures Conducted During the Planning

Multiple Choice

As a result of analytical procedures conducted during the planning phase,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 qualified 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 statements.