An analytical procedure to determine a possible misstatement of commission expense is to compare commission expense to salaries payable.

Question

Quizplus · Accepted Answer

Analytical procedures to determine possible misstatement of commission expense typically involve comparing current period commission expense to sales volume or commission rates, rather than to salaries payable, as commissions are usually tied to sales performance, not to fixed salaries.

An Analytical Procedure to Determine a Possible Misstatement of Commission