5.

Analytical procedures are most appropriate when testing which of the following types of
transactions?

A. Payroll and benefit liabilities

B. Acquisitions and disposals of fixed assets

C. Operating expense transactions

D. Long-term debt transactions

3. While performing interim audit procedures of accounts receivable, numerous unexpected

errors are found resulting in a change of risk assessment. Which of the following audit
responses would be most appropriate?

A. Move detailed analytical procedures from year end to interim.

B. Increase the dollar threshold of vouching customer invoices.

C. Send negative accounts receivable confirmations instead of positive accounts receivable

confirmations.

D. Use more experienced audit team members to perform year-end testing

D