An Indicator That the Auditor Might Need to Adopt Extended

question 56

Multiple Choice

An indicator that the auditor might need to adopt extended audit procedures would be best evidenced by __________.

• A)an unusual fluctuation in gross profit margin last year
• B)net sales is increasing approximately 3% per year
• C)a new competitor has entered the client's industry
• D)the client's current ratio has decreased slightly

---

Definitions:

Use of Language

The manner in which words and syntax are utilized to construct meaningful communication.

Working Memory Span

The maximum number of items that individuals can keep in their working memory or immediate consciousness at any given moment.

Full Adult Level

Encompasses the stage of development where an individual possesses mature cognitive capabilities and has achieved their full mental growth.

Preoperational Stage

A developmental stage in early childhood (approximately 2 to 7 years old) characterized by symbolic thinking, egocentrism, and centration according to Jean Piaget's theory.