W3 t1

Due Saturday: 02/02

APA 3 paragraphs 3 sources

Assume that an auditor wishes to use analytical procedures as a substantive procedure.  Please choose "1" from the list below and indicate how substantive analytical procedures could be used in assisting the auditor in testing the following accounts:

a.  Interest expense related to bonds outstanding

b.  Natural gas expense for a public utility company

c.  Supplies expense for a factory

d.  Cost of goods sold for a fast-food franchisor like McDonald's.  Note that cost of goods sold tends to average about 35% of sales in fast food franchises.

e.  Salary expense for an office (region) of a professional services firm