- Analytical Procedures *Days Outstanding in Accounts Receivable is 3.09 and the industry average is 14.10 . This ratio indicates that EarthWear collects on sales much more quickly than the rest of the industry. It also represents a significant improvement relative to prior years for EarthWear and is better than expected for this year. This ratio is consistent with a relatively low allowance for doubtful accounts. Controller explains that fast collection rate is a result of increased focus on collection activities and newly implemented incentives for early payment. We will corroborate the client's explanation as a part of our testing in the sales \& collection cycle. Analyze 4 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. EarthWear's Gross Profit Percentage is 43.90% and the industry average is 38.80% 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 Debt to Equity ratio is 0.50 and the industry average is 0.84 Discuss the meaning of the analytical procedure and how it may affect risks relating to the EarthWear audit or your planned audit procedures