Based on the previous information,which of the following preliminary conclusions can the auditor use as a basis for further investigations?
A)Sales per store are directly related to the size of the store.
B)Sale clerks are less productive in larger size stores.
C)Gross margin is directly related to the size of the store.
D)Average square feet of store correlates with the number of stores in the district.

Question

Quizplus · Accepted Answer

Sales per store being directly related to the size of the store is a logical preliminary conclusion that can be further investigated, as larger stores may have more inventory and customer capacity, potentially leading to higher sales.

Based on the Previous Information,which of the Following Preliminary Conclusions