Revenue (2)

Question 1

Where are analytical prcedures important?

Answer 1

When testing completeness of revenue

Question 2

What will a client likely have?

Answer 2

A great deal of information about company revenue and should explain any fluctuations and variances

Question 3

What should auditors consider (level of revenue)

Answer 3

The level of revenue over the year, compared on a month-by-month basis with the previous year

Question 4

What should auditors consider (change in quantities)

Answer 4

The effect on revenue value of changes in quantities sold

Question 5

What should auditors consider (change in products)

Answer 5

The effect on revenue value of changes in products or prices

Question 6

What should auditors consider (level of goods)

Answer 6

The level of goods returned, allowances and discounts

Question 7

What should auditors consider (efficiency of labour)

Answer 7

Efficiency of labour as expressed in revenue or profit before tax per employee

Question 8

What should auditors consider (gross profit)

Answer 8

Reasons for changes in the gross profit margin (analysis of gross profit margin should be as detailed as possible. Broken down by product area and month and quarter)