Which of the following is not a weakness of using industry averages for auditing?
A) The industry data are broad averages.
B) Different companies follow different accounting methods.
C) They can be helpful in identifying potential misstatements.
D) All of the above are weaknesses.

Question

Quizplus · Accepted Answer

Choice C is actually a strength of using industry averages for auditing. It can help identify potential misstatements by highlighting discrepancies between a company's financial performance and industry averages. Choices A and B are both weaknesses as industry data may differ significantly based on varying company practices and the broad nature of the averages used.

Which of the Following Is Not a Weakness of Using