2. In addition to the analytical procedures already listed in the memo, analyze an additional four that are useful in the planning process for the EarthWear audit. Discuss the meaning of the analytical procedures included and how they may affect your audit plan/procedures. Work Paper 3-6 and the Common Size Balance Sheet and Income Statement for EarthWear have been provided to assist you.

Analyze 2 additional analytical procedures that were completed in the planning process.

EarthWear's Quick Ratio is 0.73 and the industry average is 0.80

Discuss the meaning of the analytical procedure and how it may affect risks relating to the EarthWear audit or your planned audit procedures.

EarthWear's Inventory Turnover is 3.88 and the industry average is 6.20

Discuss the meaning of the analytical procedure and how it may affect risks relating to the EarthWear audit or your planned audit procedures.