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As a result of analytical procedures, the auditor determines that the gross profit percentage has increased from 20% in the preceding year to 40% in
As a result of analytical procedures, the auditor determines that the gross profit percentage has increased from 20% in the preceding year to 40% in the current year. The auditor should:
A. Issue a qualified or adverse opinion
B. Evaluate managements performance in causing this decline.
C. Investigate the possibility of a misstatement in the financial statements.
D. Require footnote disclosure.
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