As a Result of Analytical Procedures, the Independent Auditor Determines

question 19

Multiple Choice

As a result of analytical procedures, the independent auditor determines that the gross profit percentage has declined from 30% in the preceding year to 20% in the current year. The auditor should:

• A) express an opinion that is modified due to the inability of the client company to continue as a going concern.
• B) evaluate management's performance in causing this decline.
• C) require footnote disclosure.
• D) consider the possibility of an error in the financial report.

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Definitions:

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