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A is a fast-growing highly profitable company. The profit margin of A is 15% higher...

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Accounting

A is a fast-growing highly profitable company. The profit margin of A is 15% higher than its competitors, though the specific reason for the higher profitability is not known. Some are concerned that A may be capitalizing expense items to improve the bottom line. Identify two substantive audit tests that would inform the auditor of potential misclassification of expenses.

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