Which One of the Following Substantive Analytical Procedures Would Be

question 86

Multiple Choice

Which one of the following substantive analytical procedures would be most useful in alerting the auditor to the possibility inventory and cost of goods sold being overstated or understated?

• A) Compare extended inventory value with that of previous years.
• B) Compare unit costs of inventory with previous years.
• C) Compare inventory turnover ratio with previous years.
• D) Compare current year manufacturing costs with previous years.

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Definitions:

High Metabolism

A condition where the body burns calories at a faster rate than average, often resulting in difficulty gaining weight.

Satiety

The feeling of fullness or satisfaction that signals the end of a meal and inhibits eating until the next meal.

Hunger Pangs

Physical sensations of discomfort or pain in the stomach area indicating the need or desire to eat.

Digestive Tract

The series of hollow organs joined in a long, twisting tube from the mouth to the anus, where digestion of food occurs.