As a result of analytical procedures conducted during the planning phase, 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 qualified due to the inability of the company to continue as a going concern.
B. Consider the possibility of an error in the financial statements.
C. Evaluate management's performance in causing this decline.
D. Require footnote disclosure.
Answer: B
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