Julianne is performing an analysis of the bad debt expense as a percentage of total sales.When performing the analytical procedure,it is important that Julianne
A)can rely on the internal controls of the accounts receivable process.
B)has an expectation of the result that should be obtained.
C)has concluded that the accounts receivable balance is free from material misstatement.
D)has requested permission from the client.

Question

Quizplus · Accepted Answer

When performing an analytical procedure, it is important to have an expectation of the result that should be obtained. This helps to identify potential issues and anomalies in the data. The other options listed, such as relying on internal controls or concluding that the accounts receivable balance is free from material misstatement, may be important considerations in other types of audit procedures, but they are not specifically relevant to performing an analytical procedure. Requesting permission from the client is also not applicable to this particular situation.

Julianne Is Performing an Analysis of the Bad Debt Expense