Which of the following steps should be performed first in applying analytical procedures?
a. Determine whether the difference between the expectation and the recorded amount is reasonable
b. Investigate and evaluate significant differences from the expectation
c. Develop an expectation of a balance or ratio by using relationships that are expected to exist
d. Compare the clients recorded balance or ratio with the expectation
Ans: c. Develop an expectation of a balance or ratio by using relationships that are expected to exist
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A) product diversification B) customer satisfaction C) brand loyalty D) rising profit margins E) efficiency of production
While signing a contract, one of the parties misinterpreted a legal clause. Neither of the parties is a legal professional. Which of the following statements holds well in this scenario?
A) The party who misinterpreted the law is actionable for fraud. B) The party who misinterpreted the law may rescind the contract. C) The party who misinterpreted the law is not actionable for fraud. D) The contract is declared unenforceable as the law has been misinterpreted.