Which of these tests would be the least useful when using analytical procedures on expenses?
A) comparing prior year amounts with current year amounts
B) comparing current year amounts as a percentage of sales with prior year
C) comparing relationships between related expenses
D) comparing total expenses to the bank balance at balance date

Question

Quizplus · Accepted Answer

Comparing total expenses to the bank balance at balance date would be the least useful test because expenses and bank balances do not have a clear correlation. The other tests listed are more relevant to analyzing expenses, such as comparing year over year trends and relationships between related expenses.

Which of These Tests Would Be the Least Useful When