Question

Please provide answers next to the questions provided. Most questions can be answered with 3 or less sentences, but please do not exceed 5 sentences.

Do you think the ethical dilemma framework is a useful tool? Why or why not?

What is the difference between the appropriateness and the sufficiency of evidence in determining the persuasiveness of evidence.

How would you interpret a Gross Profit Percentage of 22%? How would you determine if this number is favorable or unfavorable?

Answer 1

Do you think the ethical dilemma framework is a useful tool? Why or why not?

The ethical dilemma framework is a very useful tool as it gives a a way for dealing with situations involving ethical dilemmas through its principles, metrics, etc. Frameworks help managers to understand and analyze the moral dimensions of a given situation that they help identify key themes, raise important questions, and provide a basis for making informed and defensible decisions.

What is the difference between the appropriateness and the sufficiency of evidence in determining the persuasiveness of evidence.

Sufficiency is the measure of quantity of audit evidence i.e. the amount of evidence obtained must be enough that it can be used and considered by the auditor

Appropriateness is the measure of the quality of audit evidence, i.e., its relevance and reliability. To be appropriate, audit evidence must be both relevant and reliable in providing support for the conclusions on which the auditor's opinion is based.

How would you interpret a Gross Profit Percentage of 22%? How would you determine if this number is favorable or unfavorable?

A good Gross proft margin will vary considerably by industry, but as a general rule , a 10% gross profit percenatge is considered average, a 20% margin is considered high (or “good”), and a 5% margin is low. Hence, by applying the general rule, Gross profit percentage of 22% could be determined as "favourable"