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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.

Auditing: A Risk Based-Approach (MindTap Course List)
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 19RQSC
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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.
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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