Explain how ratio analysis and industry comparisons can be useful to the auditor identifying potential risk of material misstatement on an audit engagement. How can such analysis also help the auditor plan the audit?
Explain how ratio analysis and industry comparisons can be useful to the auditor identifying potential risk of material misstatement on an audit engagement. How can such analysis also help the auditor plan the audit?
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter7: Planning The Audit: Identifying, Assessing, And Responding To The Risk Of Material Misstatement
Section: Chapter Questions
Problem 17RQSC
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Explain how ratio analysis and industry comparisons can be useful to the auditor identifying potential risk of material misstatement on an audit engagement. How can such analysis also help the auditor plan the audit?
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