During the course of preliminary analytical tests of Caroline Sales Company, a client, a CPA observed the following:

1 Which of the expenses would probably not require any further investigation of overall propriety?

2. If sales commissions expense were to be investigated further, what is the first procedure the auditor would undertake to establish its overall reasonableness?

3. List the procedures the auditor should take to further investigate the propriety of each of the expenses that need investigation.

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Rent Sales commissions Advertising Office supplies Depreciation Actual expense, 19X1 Budgeted expense, Actual expense. 19X2 $12,000 $15,000 6,000 7,000 4,000 5,000 19X2 $15,000 11,000 9,000 400 400 350 1,700 1,800 2,700