Question: Audit evidence needs to be evaluated and validated before it can be relied upon by an independent auditor One of the tools employed by an

Audit evidence needs to be evaluated and validated before it can be relied upon by an independent auditor One of the tools employed by an auditor is ratio analysis in carrying out an audit assignment. This includes re-computation of various accounting ratios which is then compared with prior years and industry averages. Discuss the sufficiency, appropriateness and limitation of ratio analysis as audit evidence

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