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W3T1.docx
Due Saturday: 02/02
APA 3 paragraphs 3 sources
Assume that an auditor wishes to use analytical procedures as a substantive procedure. Please choose "1" from the list below and indicate how substantive analytical procedures could be used in assisting the auditor in testing the following accounts:
a. Interest expense related to bonds outstanding
b. Natural gas expense for a public utility company
c. Supplies expense for a factory
d. Cost of goods sold for a fast-food franchisor like McDonald's. Note that cost of goods sold tends to average about 35% of sales in fast food franchises.
e. Salary expense for an office (region) of a professional services firm
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