Evaluate whether the relation between the gross margin percentage and inventory turnover makes sense given the description of each company’s business.
TASK 8-32 (OBJECTIVE 8-4) In the audit of the Worldwide Wholesale Company, you did extensiveratio and trend analysis as part of preliminary audit planning. Your analytical proceduresidentified the following: 1. Commission expense as a percent of sales was constant for several years but has in-creased significantly in the current year. Commission rates have not changed. […]