The following questions concern the use of analytical procedures during

The following questions concern the use of analytical procedures during an audit. Select the best response. 

a. For all audits of financial statements made in accordance with auditing standards, the use of analytical procedures is required to some extent 

b. Which of the following situations has the best chance of being detected when a CPA compares 2019 revenues and expenses with the prior year and investigates all changes exceeding a fixed percent? 

(1) An increase in property tax rates has not been recognized in the company’s 2019 accrual. 

(2) The cashier began lapping accounts receivable in 2019. 

(3) Because of worsening economic conditions, the 2019 provision for uncollectible accounts was inadequate. 

(4) The company changed its capitalization policy for small tools in 2019. 

c. Which of the following would not be considered to be an analytical procedure? 

(1) Estimating payroll expense by multiplying the number of employees by the average hourly wage rate and the total hours worked 

(2) Projecting the error rate by comparing the results of a statistical sample with the actual population characteristics 

(3) Computing accounts receivable turnover by dividing credit sales by the average net receivables 

(4) Developing the expected current-year sales based on the sales trend of the prior 5 years

How Our Website Works

1. FILL IN OUR SIMPLE ORDER FORM

It has never been easier to place your order. Fill in the initial requirements in the small order form located on the home page and press “continue” button to proceed to the main order form or press “order” button in the header menu. Starting from there let our system intuitively guide you through all steps of ordering process.

2. PROCEED WITH THE PAYMENT

All your payments are processed securely through PayPal. This enables us to guarantee a 100% security of your funds and process payments swiftly.

3. WRITER ASSIGNMENT

Next, we match up your order details with the most qualified freelance writer in your field.

4. WRITING PROCESS

Once we have found the most suitable writer for your assignment, they start working on a masterpiece just for you!

5. DELIVERY

Once finished, your final paper will be available for download through your personal dashboard. You will also receive an email notification with a copy of your paper attached to it. Sometimes, the writer may leave a note for you about the order in case there is any additional information that they need to give you.

Leave a Reply

Your email address will not be published.