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What should the auditor do?
As a result of analytical procedures, the auditor determines that the gross profit percentage has declined from 30% in the preceding year to 20% in the current year. 



A. Express a qualified opinion due to inability of the client company to continue as a going concern
B. Evaluate management s performance in causing this decline
C. Require footnote disclosure
D. Consider the possibility of a misstatement in the financial statements

This question is part of Auditing - Final - Multiple Choice
Asked by Dodonutt, Last updated: Oct 16, 2018

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5 Answers

John Adney

John Adney

Answered on Oct 16, 2017

The auditor should require footnote disclosure as a result of analytical procedure

 Reply

John Adney

John Adney

Answered on Feb 28, 2017

Evluate management performance in causing this decline
 Reply

Divyesh

Divyesh

Answered on Feb 17, 2017

Evaluate management s performance in causing this decline
 Reply

lawrencescarlett

Lawrencescarlett

Answered on Dec 04, 2016

Consider the possibility of a misstatement in the financial statements
 Reply

John Smith

John Smith

Answered on Oct 15, 2016

Consider the possibility of a misstatement in the financial statements

LO #16-2
 Reply

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