3. Identify an example of substantive analytical procedures using ADA techniques.

a Cash receipts to sales invoice matching procedure by comparing 100% of sales invoices to cash receipts for the entire year under audit and period

subsequent to balance sheet date to verify occurrence of sales.

b Comparison of 100% of cash disbursements activity to an approved master vendor list to determine whether payments were made to vendors that had

not been approved through the formal control procedures.

c Trend analysis of sales revenue showing quarterly sales over past four years and sales for each type of product to determine whether there are any

unusual changes in sales from prior years or other trends that might affect risk of material misstatement.

d Predictive model to develop the auditor's expectation of rental revenue for each apartment building held by a real estate company based on apartment

buildings number of units (by size), average monthly marketplace rental rate, and marketplace monthly vacancy rates.