Question

To make a year-to-year comparison of inventory turnover most meaningful, the auditor performs the analysis?

1) for company as a whole
2) by division
3) by product
4) all of the above

Answer 1

The auditor performs the analysis by considering the company as a whole, by division, and by product.

Step-by-step explanation:

To make a year-to-year comparison of inventory turnover most meaningful, the auditor performs the analysis by considering all of the above options: 1) for company as a whole, 2) by division, and 3) by product. Each of these approaches provides different insights into the efficiency of inventory management and helps identify areas that need improvement.