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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: Feb 19, 2020

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5 Answers

John Adney

John Adney

Answered Oct 16, 2017

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

 

John Adney

John Adney

Answered Feb 28, 2017

Evluate management performance in causing this decline
 

Divyesh

Divyesh

Answered Feb 17, 2017

Evaluate management s performance in causing this decline
 

lawrencescarlett

Lawrencescarlett

Answered Dec 04, 2016

Consider the possibility of a misstatement in the financial statements
 

John Smith

John Smith

Answered Oct 15, 2016

Consider the possibility of a misstatement in the financial statements

LO #16-2
 

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