1) Explain how the calculation and comparison to previous years of the gross margin percentage and the ratio of accounts receivable to sales are related to the confirmation of accounts receivable and other tests of the accounts receivable balance. 2) Evaluate the following statement: "Tests of sales and cash receipts transactions are such an essential part of every audit that I like to perform them as near the end of the audit as possible. By that time I have a fairly good understanding of the client's business and its internal controls because confirmations, cutoff tests, and other procedures have already been completed." 3) Rank the following types of tests from most costly to least costly: substantive analytical procedures, tests of details of balances, risk assessment procedures, tests of controls, and substantive tests of transactions. 4) Why is it desirable to design tests of details of balances before performing tests of controls and substantive tests of transactions? State the assumptions that the auditor must make in doing so. What does the auditor do if the assumptions are wrong? 5) Explain the relationship between the occurrence transaction-related audit objective and the existence and completeness balance-related audit objectives. 6) How might the performance