Which of the Following Is a Correct Statement Regarding Analytical

question 27

Multiple Choice

Which of the following is a correct statement regarding analytical procedures?

• A) A major strength in using industry ratios for auditing is the difference between the nature of the client's financial information and that of the firms making up the industry totals.
• B) Common-size financial statements display all items as a percentage change from a base year.
• C) In identifying areas of specific risk, the auditor is likely to focus on the liquidity activity ratios.
• D) In order to look for a misstatement in the allowance for bad debts, the auditor should divide gross sales by sales returns and allowances.

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Definitions:

Samuel Bowles

An American economist and a leading figure in understanding the relationship between education, inequality, and the workforce within a capitalist economy.

Herbert Gintis

An economist and interdisciplinary scholar recognized for his contributions to understanding the intersection of economics and sociology, particularly in regards to education, game theory, and human behavior.

Hidden Curriculum

The implicit, informal lessons, values, and viewpoints that students absorb during their time in school, even though they are not part of the formal curriculum.

Curriculum Presented

The content and material offered by an educational institution for learning and instruction in a specific course or program.