In audit planning the audit of Construction Industry Resources, Inc., a building supply company. You have completed

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In audit planning the audit of Construction Industry Resources, Inc., a building supply company. You have completed analytic procedures relevant to purchases and inventory. The results of these procedures are included in Figure 8.13.
Figure 8.13. Selected Financial Information ($000)
In audit planning the audit of Construction Industry Resources, Inc.,

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Analytical procedures show that inventory turnover decreased from 31,34 days to 27 days, and gross margins declined to the lowest level in five years. What might this indicate about the risk of misstatement with respect to inventory and inventory purchases?

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Auditing A Practical Approach with Data Analytics

ISBN: 978-1119401742

1st edition

Authors: Raymond N. Johnson, Laura Davis Wiley, Robyn Moroney, Fiona Campbell, Jane Hamilton

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