Determine which of the following analytical procedures provide persuasive evidence. O An auditor reads the agreement signed by both the employer and the commission-based employees. The auditor recalculates commission expense based on the agreements and the related sales. a To determine the reasonableness of depreciation expense, an auditor performs some analysis by comparing the expense to last year, including consideration over acquisitions and disposals during the year. O An auditor reviews the investments of a company and, using an average interest rate, estimates the amount of investment income. O An auditor calculates the gross margin for the past five years to support the current year's gross margin. O An auditor looks at the miscellaneous expense account to find any unusual or large transactions.
Determine which of the following analytical procedures provide persuasive evidence. O An auditor reads the agreement signed by both the employer and the commission-based employees. The auditor recalculates commission expense based on the agreements and the related sales. a To determine the reasonableness of depreciation expense, an auditor performs some analysis by comparing the expense to last year, including consideration over acquisitions and disposals during the year. O An auditor reviews the investments of a company and, using an average interest rate, estimates the amount of investment income. O An auditor calculates the gross margin for the past five years to support the current year's gross margin. O An auditor looks at the miscellaneous expense account to find any unusual or large transactions.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Determine which of the following analytical procedures provide persuasive evidence.
O An auditor reads the agreement signed by both the employer and the commission-based employees. The auditor
recalculates commission expense based on the agreements and the related sales.
a To determine the reasonableness of depreciation expense, an auditor performs some analysis by comparing the expense to
last year, including consideration over acquisitions and disposals during the year.
O An auditor reviews the investments of a company and, using an average interest rate, estimates the amount of investment
income.
O An auditor calculates the gross margin for the past five years to support the current year's gross margin.
O An auditor looks at the miscellaneous expense account to find any unusual or large transactions.
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