An Abnormal Fluctuation in Gross Profit Suggests the Need for Extended

question 73

Multiple Choice

An abnormal fluctuation in gross profit suggests the need for extended audit procedures for sales and inventories.This would most likely be identified in the audit risk assessment phase by utilizing:

• A)Tests of transactions and balances.
• B)An assessment of internal control.
• C)An audit time budget.
• D)Analytical procedures.

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Definitions:

Creation of Rapport

The process of building a positive relationship based on mutual trust, understanding, and empathy.

High Reliability

The characteristic of organizations, systems, or processes that operate effectively and safely under a wide range of conditions, minimizing errors and accidents.

Interview Results

The outcomes or findings derived from the process of conducting interviews, often used in the context of job candidate evaluations.

Small Firms

Businesses characterized by a smaller workforce or lower volume of sales, often offering more personalized services.