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islandgurl islandgurl
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When analyzing a client's performance measurement system,

▸ ratio analysis and benchmarking against key competitors are utilized.

▸ only income statement numbers are used.

▸ inherent risk of financial statement misstatements may be decreased if the performance measurement system encourages aggressive accounting.

▸ the auditor is likely to decrease the extent of testing if the client has set unreasonable objectives.
Textbook 

Auditing and Assurance Services


Edition: 17th
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miemitchmiemitch
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ratio analysis and benchmarking against key competitors are utilized.

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