Question: Analyze 4 additional analytical procedures that were completed in the planning process. In addition to the analytical procedures already listed in the memo, analyze an

Analyze 4 additional analytical procedures that were completed in the planning process. In addition to the analytical procedures already listed in the memo, analyze an additional four that are useful in the planning process for the EarthWear audit. Discuss the meaning of the analytical procedures included and how they may affect your audit plan/procedures. Work Paper 3-6 and the Common Size Balance Sheet and Income Statement for EarthWear have been provided to assist you. Question #1: EarthWear\'s Quick Ratio is 0.73 and the industry average is 0.80 Discuss the meaning of the analytical procedure and how it may affect risks relating to the EarthWear audit or your planned audit procedures. Questions #2: EarthWear\'s Inventory Turnover is 3.88 and the industry average is 6.20 Discuss the meaning of the analytical procedure and how it may affect risks relating to the EarthWear audit or your planned audit procedures.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Question: What as the average weekly safety inventory level of refined sugar from the beginning January 2022 to the end of July 2022? A. 512,465.9691 metric tons per week B. 316,002.1474 metric tons...

Consider the following information: Rate of Return if State Occurs State of Economy Boom :57 Bust of Economy .66 .34 Probability of State Stock A .09 .13 Stock B Stock C .03 .19 .24 -.04 a. What is...

Required a. Use professional judgment in deciding on the preliminary judgment about materiality for earnings, current assets, current liabilities, and total assets. Your conclusions should be stated...

Provide a brief description of the seven basic steps to use JDBC.

Miller Equipment Ltd. supplies cooking equipment to restaurants throughout Canada. The accounts receivable clerk for Miller Equipment Ltd. prepared the following partially shown aging of receivables...

Bienvenu Enterprises reported cost of goods sold for 2014 of $1,400,000 and retained earnings of $5,200,000 at December 31, 2014. Bienvenu later discovered that its ending inventories at December 31,...

2. Make sure all students can complete classroom tests within the period given.

Keystone Manufacturing Company started operations on January 1, 2019. During 2019, the company engaged in the following transactions: 1. Issued common stock for $40,000. 2. Paid $10,000 cash to...

Cost Flow Relationships The following information is available for the first month of operations of Kellman Inc., a manufacturer of art and craft items: Sales $3,600,000 Gross profit 650,000 Indirect...

Having done poorly on a particular exam in a junior high school, 30 students decide to write the exam again to try and improve their mark. Results are given in the following table. Student n Average...

Rita is a trader. She provided the following information on 31 July 202: $ Inventory ........................................................... ...

(2) Visualize the union of a box and a cylinder, report formulation and results. Each side of the box has the length of 1 along x, y, and z-direction and its center is at (0,0,0). The center axis of...

2) A bucket that weights 70lb when filled with water is lifted at a constant rate, by a mechanical winch, from the bottom of a well that is 60 feet deep. a) Compute the work required to lift the...

Telework triggered by COVID-19 revealed that while worker productivity increased, anxiety and mental health declined. What is this issue important to organizational effectiveness and worker...

Provide example for a Short Term Rental Arbitrage organization filling out the below sections: Industry Background provide industry background here. This is where you include information like the...

help!!! i need to submit the answer in 30minutes!!! QUESTION 4 (10 marks) For each of the following transactions, state the accounting principle concept that has been applied or violated and provide...

Chicago Company sold merchandise to a customer for $1,500 cash in a state with a 6% sales tax rate. The total amount of cash collected from the customer was $558. $600. $642. $636. Nevada Company...

=+4-34 KKK Uncertainty and expected costs OBJECTIVES 1, 4, 5, APPENDIX 4-2 Bigmart Ltd, an international retail giant, is considering implementing a new business-to-business (B2B) information system...

=+3 What is the margin of safety (in units) for June 2015?

=+4 If sales in June were only 8000 units and Mirabellas tax rate is 30%, calculate its net profit after tax.