As a Result of Analytical Procedures, the Independent Auditor Determines

question 13

Multiple Choice

As a result of analytical procedures, the independent auditor determines that the gross profit percentage has declined from 30 per cent in the preceding year to 20 per cent 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:

Previous Hospitalizations

A record or history of all past medical admissions a patient has had in hospitals.

Spontaneous Abortions

The natural end of a pregnancy at a stage where the embryo or fetus is incapable of surviving independently, often referred to as a miscarriage.

Pregnancies

The condition of having a developing embryo or fetus in the body, typically lasting around nine months in humans.

Ulcerative Colitis

A chronic condition characterized by inflammation and ulcers in the colon and rectum.