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Directional testing Explain the meaning of "directional testing" and identify the reasons why directional testing leads to audit efficiency.Give examples of directional testing for the existence and completeness assertions.
Sustainable Growth Rate
The maximum rate at which a company can grow its earnings without needing to increase external financing.
Capital Intensity Ratio
refers to a financial ratio that measures the amount of fixed assets a company uses to generate its sales revenue, indicating the level of investment needed to maintain current sales levels.
Profit Margin
A financial metric expressing the ratio of net income to sales, showing the percentage of revenue that remains as profit after all expenses are paid.
Population Average
The mean value of a particular characteristic for the entire population being studied.
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