8 You have been hired by Arthur Ross to determine which of the following accounts receivable procedures should be used in an audit of the Keating Five and Dime Store:

a Analytic review b Confirmations c Test of subsequent collections (receipts)

The three criteria used to distinguish between the procedures are as follows:

a Reliability b Cost c Validity The pairwise comparison matrix for the three criteria is as follows:

For the reliability criterion the pairwise comparison matrix of the three procedures is as follows:

For the cost criterion the pairwise comparison matrix of the three procedures is as follows:

For the validity criterion the pairwise comparison matrix of the three procedures is as follows:

Use the AHP to determine which auditing procedure should be used. Also check the first pairwise comparison matrix for consistency.†

Transcribed Image Text:

Reliability Cost Validity 1 5 51 5 1 2 1. 1