When an Auditor Calculates the Gross Margin as a Percent

question 77

Multiple Choice

When an auditor calculates the gross margin as a percent of sales and compares it with previous periods,this type of evidence is called

• A)physical examination.
• B)analytical procedures.
• C)observation.
• D)enquiries of client.

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Definitions:

Intent To Monopolize

A legal concept referring to actions or strategies by a company designed to achieve, maintain or extend monopoly power, often scrutinized under antitrust laws.

Sherman Act

The Sherman Act is a landmark federal statute in the field of United States antitrust law passed in 1890, which prohibits monopolistic practices and promotes competition.

Per Se Treatment

A legal doctrine implying that an action or condition is inherently illegal without the necessity of proving harm or competitive disadvantage.

Rule Of Reason

A legal doctrine used in antitrust law to determine if a business practice is unlawful based on its impact on competition.