Question: Assume that the auditor concludes that detection risk must be very low. The auditor proposes that sales be audited by examining the relationship of sales

Assume that the auditor concludes that detection risk must be very low. The auditor proposes that sales be audited by examining the relationship of sales and cost of sales to that of the previous two years, as adjusted for an increase in gross domestic product. Explain either why, or why not, this would be a good test of the account balance.

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