There Are Many Types of Analytical Procedures That the Auditor

question 56

Multiple Choice

There are many types of analytical procedures that the auditor can conduct during the planning stage of the financial statement audit.What is the purpose of comparing the gross margin with prior years and looking for large fluctuations?

• A)to understand the client's industry and business
• B)to assess going concern
• C)to identify possible misstatements
• D)to reduce detailed tests

---

Definitions:

Consideration Concerns

involve being mindful and accommodating of the feelings, needs, and interests of others.

Structure Concerns

Refers to issues or considerations related to the organization, layout, or framework of a system or entity.

Worker Bee

A term often used metaphorically to describe someone who is industrious and hardworking, usually in a collective or organizational setting.

Leader

A person who guides or directs a group, organization, or country by providing vision, inspiration, and direction.