To detect an overstatement or understatement of inventory and cost of goods sold,the auditor may perform an analytical procedure such as comparing
A)gross margin percentage with previous years.
B)inventory turnover with previous years.
C)current year manufacturing costs with previous years.
D)extended inventory value with previous years.

Question

Quizplus · Accepted Answer

The Answer of To detect an overstatement or understatement of inventory and cost of goods sold,the auditor may perform an analytical procedure such as comparing
A)gross margin percentage with previous years.
B)inventory turnover with previous years.
C)current year manufacturing costs with previous years.
D)extended inventory value with previous years.

To Detect an Overstatement or Understatement of Inventory and Cost