An Example of Auditor Using Disaggregated Data to Increase the Precision

question 39

True/False

An example of auditor using disaggregated data to increase the precision of the auditor's expectations using substantive analytical procedures in the audit of inventories would be to calculate gross margin by product line, rather than calculating the total gross margin for total sales in the planning stage of the audit.

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Definitions:

Negative Points

Aspects or elements of a discussion, review, or analysis that highlight weaknesses, downsides, or disadvantages.

More Formal

Refers to a style or manner that is characterized by a greater adherence to traditional standards and rules of etiquette, often used in specific contexts or communications.

Clothing

Items worn on the body, usually made from fabric or textiles.

Interviewer

An individual who asks questions or conducts an interview, typically for the purpose of gathering information or assessing qualifications.