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C)Whenever the auditor fails to consider the pattern reflected by several unusual fluctuations when trying to explain what caused them.D)The auditor is likely to encounter judgment problems in each of the above instances. Answer: DTerms: Judgme nt proble ms in use of analytical procedures Diff: Challe ngingObjective: LO 8-7AACSB: Re flective thinking skills6)The major concern when using nonfinancial data in analytical procedures is the:7
7)Whenever an auditor compares client data to client-prepared budgets, there are two special concerns. Indicate if the two items below are concerns.Objective: LO 8-7AACSB: Re flective thinking skillsLearning Objective 8-81)Which is a liquidity activity ratio?A)Profit marginB)Inventory turnoverC)Return on assetsD)Times interest earned Answer: BTerms: Liquidity ratio Diff: Moderate Objective: LO 8-8AACSB: Re flective thinking skills