An Abnormal Fluctuation in Gross Profit That Might Suggest the Need

question 39

Multiple Choice

An abnormal fluctuation in gross profit that might suggest the need for extended audit procedures for sales and inventories would most likely be identified in the planning phase of the audit by the use of:

• A)tests of transactions and balances.
• B)a preliminary review of internal controls.
• C)specialized audit programs.
• D)analytical procedures.

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Definitions:

Honour Society

An organization that recognizes excellence among peers; often in academic or professional contexts.

Elaboration Likelihood Model

A theory in social psychology that proposes two routes to persuasion: the central route and the peripheral route, based on the degree of thought and cognitive processing involved.

Central Route

A method of persuasion that entails thoughtful consideration of the arguments and content of a message.

Persuasive Messages

Communications designed to influence the attitudes, beliefs, or behaviors of the recipient through reasoning, appeal to emotion, or authority.