I am having a horrible time trying to figure out the answer to 7-35 B & C. I thank you for any help possible.

7-36 (Objective 7-4) Analytical procedures consist of evaluations of financial information made by a study of plausible relationships among both financial and nonfinancial data. They range from simple comparisons to the use of complex models involving many relationships and elements of data. They involve comparisons of recorded amounts, or ratios developed from recorded amounts, to expectations developed by the auditors. a. Describe the broad purposes of analytical procedures. There are three types of analytical procedures. 1. Preliminary Analytical procedures are used to help the auditor understand the business and plan nature, timing and extent of audit procedures. 2. Substantive analytical procedures are used as a substantive procedure to obtain evidential matter to account balances. 3. Final analytical procedures are used as an overall review for the financial information in the final review state of the audit. b. When are, analytical procedures required during an audit? Explain why auditors use analytical procedures extensively in all parts of the audit. Analytical procedures are an important part of an audit process and consist of evaluations of financial information made by a study of plausible relationships among both financial and nonfinancial data. c. Describe the factors that influence the extent to which an auditor will use the results of analytical procedures to reduce detailed tests in meeting audit objectives. The three factors that influence the extent to which an auditor will use the results of analytical procedures to reduce detailed test in meeting audit goals are the independence of the sources of evidence, effectiveness of internal controls and the auditor's direct personal knowledge. 7-37 (Objectives 7-5, 7-6) You are the in-charge on the audit of Vandervoort Company and are to review the audit schedule shown above. a. List the deficiencies in the audit schedule. Explanation not indicate a specific activity Not having a proper explanation given for thick marks Classification of long term portion which is not appropriately results. b. For each deficiency, state how the audit schedule could be improved. c. Prepare an improved audit schedule, using an electronic spreadsheet software program. Include an indication of the audit work done as well as the analysis of the client data (instructor's option). 8-28 (Objectives 8-2, 8-3, 8-4, 8-5) The following are various activities an auditor does during audit planning. 1. Determine the likely users of the financial statements. (2) Understand the client's business and industry. 2. Identify whether any specialists are required for the engagement. (1) Accept client and perform initial audit planning. 3. Send an engagement letter to the client. (1) Accept client and perform initial audit planning. 4. Tour the client's plant and offices. (2) Understand the client's business and industry. 5. Compare key ratios for the company to those for industry competitors. (4) Perform preliminary analytical procedures. 6. Review management's risk management controls and procedures. (3) Assess client's business risk. 7. Review accounting principles unique to the client's industry. (2) Understand the client's business and industry. 8. Identify potential related parties that may require disclosure. (2) Understand the client's business and industry. For each procedure, indicate which of the first four parts of audit planning the procedure primarily relates to: (1) accept client and perform initial audit planning; (2) understand the client's business and industry; (3) assess client business risk; (4) perform preliminary analytical procedures. 8-35 (Objectives 8-3, 8-5, 8-8) You have performed preliminary analytical procedures on one of your audit engagements and observed the following independent situations: 1. The allowance for obsolete inventory increased from the prior year, but the allowance as a percentage of inventory decreased from the prior year. (A) Shipments of inventory sold prior to year-end were included in the client's inventory counts as of the balance sheet date. 2. Long-term debt increased from the prior year, but total interest expense decreased as a percentage of long-term debt. (C) Sales have decreased compared to prior year, and the client is maintaining less inventory thus. 3. The dollar amount of operating income is consistent with the prior year although the entity was more profitable on a net income basis. Portions of existing long-term debt were refinanced at lower interest rates. The effective tax rate decreased, as a compared to the prior year. Short-term borrowing was refinanced on a long-term basis at lower interest rates. 4. The quick ratio decreased from the prior year, although the amount of cash and net accounts receivable is almost the same as the prior year. The client purchased a large block of inventory on account close to year end. Below are possible explanations for each of the observed changes in the financial statement amounts and ratios. For each observed change, select the most likely explanation(s) from the list below. Note: There may be more than one explanation for a given observed change, and an explanation can be used more than once. a. Shipments of inventory sold prior to year-end were included in the client's inventory counts as of the balance sheet date. b. Selling and general administrative expenses were lower this year relative to last year. c. Sales have decreased compared to the prior year, and the client is maintaining less inventory as a result