Calculating the Gross Margin for the Current Audit Year as a Percent

question 94

Multiple Choice

Calculating the gross margin for the current audit year as a percent of sales and comparing it with previous years is what type of evidence?

• A) physical examination
• B) analytical procedures
• C) observation
• D) inquiry

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Definitions:

Equipment

Devices or tools necessary for completing specific tasks or operations, often used in various industries.

Inventory Record

Documentation that tracks the quantity, value, and location of all the inventory a company holds.

Units Sold

The total number of individual items or products sold by a company during a specific time period.

Units Received

Refers to the actual quantity of goods that have been delivered or received, typically in a business context for inventory tracking or accounting purposes.