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Wednesday, February 3, 2010

Audit Ratio

Audit Ratio

Formula to calculate audit ratio:

Audit Ratio = audit costs / sales



Audit ratio definition and explanation:


A high audit ratio indicates that more audit time was required because of problems with the company's accounting records or control procedures.



The audit ratio is included in the financial statement ratio analysis spreadsheets highlighted in the left column, which provide formulas, definitions, calculation, charts and explanations of each ratio.

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