Based on the Previous Information,which of the Following Preliminary Conclusions

question 82

Multiple Choice

Based on the previous information,which of the following preliminary conclusions can the auditor use as a basis for further investigations?

• A)Sales per store are directly related to the size of the store.
• B)Sale clerks are less productive in larger size stores.
• C)Gross margin is directly related to the size of the store.
• D)Average square feet of store correlates with the number of stores in the district.

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Definitions:

Freeplay

The amount of slack or movement allowed in a part or mechanism before engagement or resistance begins, often critical in mechanical linkages and controls.

Dial Indicator

A precision measuring tool used to measure small distances or angles with high accuracy.

Telescoping Gauges

Measuring instruments used to determine the internal size of a hole, slot, or similar feature, capable of adjusting to the size within a specified range.

Thrustline

The imaginary line in a vehicle that represents the direction of the force that is applied to propel the vehicle forward.