In the acquisition and expenditure process,the auditor might perform the following analytical procedures
A)Compare accounts payable,accrued liabilities,cost of goods sold,and the balance in all the expense accounts for the current year to the prior year.Investigate changes from the auditor's expectations that appear to be unreasonable.
B)Calculate the vendor margin percentage for the current and prior years.Investigate any changes from the auditor's expectations that appear to be unreasonable.
C)Consider the number of vendor accounts for the current year and the prior year and the new vendors added or lost in each year.
D)Compare accounts payable,accrued liabilities,cost of goods available for sale,and the balance in all the expense accounts for the current year to the prior year.Investigate changes from the auditor's expectations that appear to be unreasonable.
E)Calculate the merchandize inventory percentage for the current and prior years.Investigate any changes from the auditor's expectations that appear to be unreasonable.
F)both A and C
G)both B and D

Question

Quizplus · Accepted Answer

Choice A and D both involve comparing accounts payable, accrued liabilities, and expense accounts for the current and prior years and investigating any unreasonable changes. Choice C involves considering the number of vendor accounts and changes in vendors, which is also a relevant analytical procedure in the acquisition and expenditure process. Therefore, options A, C, and D are all important analytical procedures to perform, making choice F the best answer. Choice B and E are not as relevant to the acquisition and expenditure process.

In the Acquisition and Expenditure Process,the Auditor Might Perform the Following