7) Which of the following is a correct statement regarding analytical procedures? A) A major strength in using industry ratios for auditing is the difference between the nature of the client's financial information and that of the firms making up the industry totals. B) Common-size financial statements display all items as a percentage change from a base year. C) In identifying areas of specific risk, the auditor is likely to focus on the liquidity activity ratios. D) In order to look for a misstatement in the allowance for bad debts, the auditor should divide gross sales by sales returns and allowances