Question: You are performing an audit for a client in the construction industry. The client uses the percentage of completion method for revenue recognition. You may

You are performing an audit for a client in the construction industry. The client uses the percentage of completion method for revenue recognition. You may choose to use audit data analytics to do which of the following?

Select answer from the options below

Evaluate gross margins on each project in the first quarter compared to gross margins on completed projects.

Identify projects with high net margins.

Identify projects with unusually high

(

or low

)

net margins.

Investigate work in progress on each project.

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