If auditors compare the gross profit margin by product and compare it with prior periods,this is an example of a(n)
A)Analytical procedure.
B)Inspection technique.
C)Presentation procedure.
D)Scanning technique.

Question

Quizplus · Accepted Answer

Comparing the gross profit margin by product and comparing it with prior period is an example of an analytical procedure, which involves comparing financial information to identify areas of concern or further investigation. Inspection technique involves physical examination of documents or assets, presentation procedure involves presenting financial information in a specific format or style, and scanning technique involves quickly reviewing a large amount of information to identify significant items.

If Auditors Compare the Gross Profit Margin by Product and Compare