Which One of the Following Analytical Procedures Would Be Most

question 45

Multiple Choice

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

• A)Compare gross margin percentage with previous years'.
• B)Compare unit costs of inventory with previous years'.
• C)Compare inventory turnover ratio with previous years'.
• D)Compare current year manufacturing costs with previous years'.

Understand the Global Reporting Initiative, its goals, and its importance for sustainable business practices.

Comprehend the benefits and risks associated with ethics auditing.

Identify the importance of independent verification in the ethics audit process for adding credibility and objectivity.

Recognize the role of organizational culture in preventing retaliation against employees who report misconduct.

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Definitions:

Setting Objectives

The process of establishing specific, measurable, achievable, relevant, and time-bound goals for individuals or organizations.

Management Function

The roles and activities undertaken by managers to achieve organizational objectives, including planning, organizing, leading, and controlling.

Planning Process

The structured approach that outlines how goals are achieved through a series of actions or steps.

Reaching Goals

The process of setting, pursuing, and ultimately achieving objectives, whether personal, professional, or organizational.