Which of the following is an example of the type of analytics that an auditor would use for inventory?
A) Number of day's sales in receivables compared to industry averages.
B) Inventory turnover for the previous five years.
C) Days outstanding in accounts payable.
D) Salaries of marketing personnel as a percent of total inventory.

Question

Quizplus · Accepted Answer

Inventory turnover for the previous five years is a relevant analytics an auditor would use for inventory. It measures how many times a company has sold and replaced its inventory over a specified period, giving insight into the efficiency of its inventory management. This analytical technique helps identify inventory-related risks or discrepancies that need to be addressed by the enterprise. The other options (A, C, and D) are either unrelated or not relevant to inventory.

Which of the Following Is an Example of the Type