Which of the following would not be considered an analytical procedure?
A) calculate the gross profit ratio and compare it to the industry figure
B) compare current year's operating expenses to prior year's
C) compare current year's working capital to prior year's
D) divide sales commissions by sales and compare the results to the established
Commission rate
E) compare the per unit price on a sales invoice to the master price list

Question

Quizplus · Accepted Answer

Analytical procedures involve comparisons of aggregated numbers that would highlight trends or ratios that are inconsistent with expectations. Comparing the per unit price on a sales invoice to the master price list is more of a detail test of a transaction, focusing on verifying the accuracy of specific billing, rather than an analytical procedure which would typically involve analysis of financial data at a higher level.

Which of the Following Would Not Be Considered an Analytical