Question 16 One audit procedure commonly used by auditors is ratio analysis. How is this procedure...
Question 16
One audit procedure commonly used by auditors is ratio analysis. How is this procedure useful?
|
a. |
To expose management fraud. |
|
b. |
Identifying potential audit issues when ratios change significantly from year over year. |
|
c. |
Identifying significant differences between the client’s ratios and those of industry norms. |
|
d. |
Both b and c. |
Homework Answers
Ans: D.Both b and c is Correct Answer
Explanation:
Auditor uses the ratio analysis
To Identifying potential audit issues when ratios change
significantly from year over year.
To Identifying significant differences between the client’s ratios and those of industry norms.
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Question 16
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