An Auditor Should Compare the Unaudited Financial Statements with Both

question 96

True/False

An auditor should compare the unaudited financial statements with both past results and industry trends to gain an indication about the possibility of fraud.

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Definitions:

Technology Improvement

The enhancement or development of new technologies or the improvement of existing technologies, which can lead to increased efficiency and productivity.

Complementary Good

A product or service that is typically used or consumed together with another good or service, increasing demand for one another.

Equilibrium Price

The price at which the quantity of a good supplied equals the quantity demanded, balancing the market.

Equilibrium Quantity

The quantity of goods supplied is equal to the quantity of goods demanded at the market equilibrium price.