Below are 12 audit procedures. Classify each procedure according to the following types of audit evidence:
-Calculate the ratio of cost of goods sold to sales as a test of overall reasonableness of gross margin relative to the preceding year.
A) physical examination
B) observation
C) confirmation
D) inspection
E) analytical procedures
F) inquiry of the client
G) recalculation
H) reperformance

Question

Quizplus · Accepted Answer

This procedure involves comparing current year figures to those of the previous year to assess the reasonableness of the gross margin. This comparison and analysis of financial information is classified as analytical procedures.

Below Are 12 Audit Procedures