An abnormal fluctuation in gross profit suggests the need for extended audit procedures for sales and inventories. This would most likely be identified in the audit risk assessment phase by utilizing:
A. Analytical procedures.
B. An audit time budget.
C. Tests of transactions and balances.
D. An assessment of internal control.
Answer: A
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The worldwide geographic area structure differs from the worldwide product divisional structure in the level of centralization of decision making.
Answer the following statement true (T) or false (F)
The Conclusions and Recommendations sections of a report serve the same function
Indicate whether the statement is true or false
Martin, Leah, and Pablo are considering forming a business. What factors should they consider in making a choice of organization?
a. Ease of creation and operation. b. Whether there is personal liability for the owners. c. How the owners will be taxed. d. All of the above.
A company reported total equity of $145,000 at the beginning of the year. The company reported $210,000 in revenues and $165,000 in expenses for the year. There were no stockholder investments or dividends during the year. Liabilities at the end of the year totaled $92,000. What are the total assets of the company at the end of the year?
A. $92,000. B. $45,000. C. $282,000. D. $210,000. E. $98,000.