Which Analytical Procedures Will Help an Auditor Identify Possible Misstatements

question 7

Multiple Choice

Which analytical procedures will help an auditor identify possible misstatements in compilation,unit costs,or extensions that affect inventory and cost of goods sold?

• A)comparing gross margin percentage with previous years
• B)comparing unit costs of inventory with previous years
• C)comparing inventory turnover with previous years
• D)comparing extended inventory value with previous years

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Definitions:

Bipolar Cell

A type of neuron found in the eyes that conducts signals from the photoreceptors to the ganglion cells, integral in the visual pathway.

Cone

(1) In botany, a reproductive structure in many gymnosperms that produces either microspores or megaspores. (2) In zoology, one of the conical photoreceptive cells of the retina that is particularly sensitive to bright light and, by distinguishing light of various wavelengths, mediates color vision. Compare with rod.

Compound Eye

A type of eye found in some arthropods, consisting of multiple small visual units that provide a wide field of vision and the ability to detect movement.

Camera Eye

A type of eye found in vertebrates and some mollusks that is characterized by a spherical lens that focuses light on the retina, producing a detailed image.