Analytical Procedures Explain Ratio Analysis as an Analytical Procedure Used by Auditor.Give

question 84

Essay

Analytical Procedures
Explain ratio analysis as an analytical procedure used by auditor.Give examples of the ratios that auditor might want to compute.

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Definitions:

Sales Taxes

Taxes imposed on the sale of goods and services, typically calculated as a percentage of the purchase price, paid by the consumer at the point of sale.

Excise Taxes

Taxes paid when purchases are made on a specific good, such as gasoline or tobacco, often included in the price of the product.

Transfer Payments

Payments made by the government to individuals for which no goods or services are required in return, such as welfare benefits and pensions.

Government Spending

Expenditures by the government sector on goods and services, including salaries of public servants, public investments, and social benefits.