REMAINING CALC EXCEL AUTH LIT OVERVIEW HELP 2 1 2 Scroll down to complete all parts of this task The following are examples of analytical procedures. Select from the option list provided the source of information that auditors would use for analytics for each example. Each choice may be used once, more than once, or not at all. Example Answer 1. If a client's prior reported sales were $120,000 in Year 1, $130,000 in Year 2, and $140,000 in Year 3, the auditor likely will predict Year 4 sales to be approximately $150,000 based on the trend. 2. If the auditor determines that sales increased by 25% for the year, accounts receivable should increase by approximately that amount 3. If the number of hours worked increased by 30%, the auditor will expect an increase in labor rncte nf annrovimatelu 30 Type here to search hp 5 7 6 O P Q WE R T Y U O 1 2 12 increase by approximately that amount. 3. If the number of hours worked increased by 30%, the auditor will expect an increase in labor costs of approximately 30 %. 4. If management prepares a budget at the beginning of the period reporting forecasted cost of sales to be $100,000, the auditor will expect cost of sales to approximate $100,000 at year end. 5. If the usual inventory turnover ratio of competitors is 10 times per year, the auditor will expect the client's turnover ratio to be approximately 10 times Type here to search 144 esc 7 4 5 6 8 3 2 Q W E R T Y U m REMAINING CALC EXCEL AUTH LIT OVERVIEW HELP 2 1 2 Scroll down to complete all parts of this task The following are examples of analytical procedures. Select from the option list provided the source of information that auditors would use for analytics for each example. Each choice may be used once, more than once, or not at all. Example Answer 1. If a client's prior reported sales were $120,000 in Year 1, $130,000 in Year 2, and $140,000 in Year 3, the auditor likely will predict Year 4 sales to be approximately $150,000 based on the trend. 2. If the auditor determines that sales increased by 25% for the year, accounts receivable should increase by approximately that amount 3. If the number of hours worked increased by 30%, the auditor will expect an increase in labor rncte nf annrovimatelu 30 Type here to search hp 5 7 6 O P Q WE R T Y U O 1 2 12 increase by approximately that amount. 3. If the number of hours worked increased by 30%, the auditor will expect an increase in labor costs of approximately 30 %. 4. If management prepares a budget at the beginning of the period reporting forecasted cost of sales to be $100,000, the auditor will expect cost of sales to approximate $100,000 at year end. 5. If the usual inventory turnover ratio of competitors is 10 times per year, the auditor will expect the client's turnover ratio to be approximately 10 times Type here to search 144 esc 7 4 5 6 8 3 2 Q W E R T Y U m