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:

Aversive Qualities

Characteristics of a stimulus that are unpleasant or uncomfortable, which can lead to avoidance behavior.

Negative Contrast Effects

Negative contrast effects occur when a lesser stimulus reduces the response strength or preference for the more favorable stimulus that was previously established.

Lateral Amygdala

A brain region involved in emotional responses, particularly fear and the formation of emotional memories.