Which of the following is a common analytical procedure that may detect misstatements in cash?

Question

Quizplus · Accepted Answer

Comparing outstanding cheques and deposits in transit with the prior year bank reconciliation can detect misstatements in cash, such as unrecorded cheques or deposits. Option A involves inventory turnover and gross profit, which are not directly related to cash misstatements. Option B involves earnings-per-share calculations, which may not be relevant to detecting cash misstatements. Option D involves comparing gross sales, which may not directly relate to cash misstatements.

Which of the Following Is a Common Analytical Procedure That