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.
c
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Mnemonic codes are appropriate for items in either an ascending or descending sequence, such as the numbering of checks or source documents
Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
There is a movement in accounting policy toward fair or current values on the balance sheet.
Financing activities in a statement of cash flows shows:
a. revenue from the firm’s primary revenue generating activities b. revenue from buying stock in other companies c. revenue from buying fixed assets d. revenue from selling stock held as an investment in another company e. revenue raised from issuing new stock
In both a supply chain and a channel of distribution, the primary aim should be to create maximum value for the customer.
Answer the following statement true (T) or false (F)