Reference no: EM132690951

Problem 1: An abnormal fluctuation in gross profit that might suggest the need for extended audit procedures for sales and inventories would most likely be identified in the planning phase of the audit by the use of

A.specialized audit programs.
B.tests of details of balances.
C.analytical procedures.
D.procedures to obtain an understanding of internal controls.

Problem 2: A common comparison occurs when the auditor calculates the expected balance and compares it with the actual balance. The? auditor's expected account balance may be determined by

A.using credit bureau reports.
B.using industry standards.
C.inquiring with the client.
D.relating it to some other balance sheet or income statement account or accounts