Which of the Following Procedures Is the Least Useful Analytical

question 26

Multiple Choice

Which of the following procedures is the least useful analytical procedure to indicate that further audit work needs to be performed before rendering the audit opinion?

• A)Developing a common-size analysis.
• B)Analyzing the dollar and percentage changes in each income statement item over the previous year.
• C)Comparing current earnings per share with earnings per share of the client's primary competitor.
• D)Developing a ratio analysis.

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Definitions:

Margin of Error

A statistic expressing the amount of random sampling error in a survey's results, indicating the range within which the true value lies with a certain level of confidence.

Statistics Examinations

Tests or assessments that measure knowledge and understanding of statistical concepts and methods.

Variance

A measure of the spread between numbers in a dataset, indicating how much the individual data points differ from the mean of the data.

Confidence Interval

A segment of values, derived from analyzing a sample, that is likely to encapsulate the value of an undisclosed population attribute.