Which of the Following Procedures Is the Least Useful Analytical

question 26

Multiple Choice

Which of the following procedures is the least useful analytical procedure to indicate that further audit work needs to be performed before rendering the audit opinion?

• A)Developing a common-size analysis.
• B)Analyzing the dollar and percentage changes in each income statement item over the previous year.
• C)Comparing current earnings per share with earnings per share of the client's primary competitor.
• D)Developing a ratio analysis.

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Definitions:

Trailer Swing Accidents

Incidents where the trailer of a tractor-trailer combination swings out and potentially causes an accident, often due to sudden maneuvers or slippery conditions.

ABS Configurations

Different setup arrangements of Anti-lock Braking System components in vehicles, designed to prevent the wheels from locking up during braking.

PLC Connection

A method of connecting Programmable Logic Controllers for automation and industrial control systems.

Geometric Average Return

The average compound return earned per year over a multi-year period.