An internal auditor wants to use ratio analysis to examine efficiencies in an organization’s accounting department. Which of the following statements identifies a weakness of ratio analysis that should be considered by the auditor?
A. It requires a substantial investment of money.
B. It is only helpful for making comparisons across industries.
C. Computer software is required in order to draw conclusions from the data.
D. It utilizes financial information that may not have been checked for validity and reliability.
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