You are auditing a company that provides online education services. Student numbers have increased in the past year by 20 per cent, and you have evidence to support the enrolment numbers. There has been no significant increase in staff numbers. Inflation is about 3 per cent per annum.
You have extracted the following expense figures from the financial statements:
Based on simple analytics and assuming no relevant information has been withheld, which expense figure would you be most concerned about (ignore materiality)?

Question

You are auditing a company that provides online education services. Student numbers have increased in the past year by 20 per cent, and you have evidence to support the enrolment numbers. There has been no significant increase in staff numbers. Inflation is about 3 per cent per annum.
You have extracted the following expense figures from the financial statements: 
 Based on simple analytics and assuming no relevant information has been withheld, which expense figure would you be most concerned about (ignore materiality)?

Quizplus · Accepted Answer

The Answer of You are auditing a company that provides online education services. Student numbers have increased in the past year by 20 per cent, and you have evidence to support the enrolment numbers. There has been no significant increase in staff numbers. Inflation is about 3 per cent per annum.
You have extracted the following expense figures from the financial statements: 
 Based on simple analytics and assuming no relevant information has been withheld, which expense figure would you be most concerned about (ignore materiality)?

You Are Auditing a Company That Provides Online Education Services