Which one of the following accounts would an auditor most likely test by performing analytical procedures?
A)Sales commissions expense.
B)Legal expenses.
C)Repairs and maintenance expense.
D)Travel expense.

Question

Quizplus · Accepted Answer

Sales commissions expense is closely related to sales revenue, and changes in one account are likely to impact the other. Therefore, an auditor would most likely test this account by performing analytical procedures to ensure that the commission expenses are reasonable and in line with the company's sales revenue. The other accounts listed may not have a direct correlation with other accounts and may not be suitable for analytical procedures.

Which One of the Following Accounts Would an Auditor Most