C whenever the auditor fails to consider the pattern

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: D
Terms: Judgme nt proble ms in use of analytical
procedures Diff: Challe nging
Objective: LO 8 - 7
AACSB: Re flective thinking skills
6) 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 - 7
AACSB: Re flective thinking
skills
Learning Objective 8 - 8
1) Which is a liquidity activity ratio?
A) Profit margin
B) Inventory turnover
C) Return on assets
D) Times interest
earned Answer: B
Terms: Liquidity
ratio Diff: Moderate
Objective: LO 8 - 8
AACSB: Re flective thinking
skills