Which One of the Following Analytical Procedures Would Be Most

question 60

Multiple Choice

Which one of the following analytical procedures would be most helpful in alerting the auditor to the possibility of obsolete inventory?

• 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 current year manufacturing costs with previous years

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Definitions:

Mental Age

A measure of an individual's cognitive ability compared to the average cognitive ability of an age group, irrespective of the person's chronological age.

Chronological Age

The amount of time that has passed since an individual's birth, measured in years.

IQ

Intelligence quotient, a measure of a person's cognitive abilities in relation to their age group.

Superior Verbal

Describes individuals who have exceptionally good skills in expressing themselves using language.