This is Risk Assessment Module question for "Alpine Cupcake Inc" Case study. Please help to figure out the answer each.
5. Evaluate the preliminary analytical procedures completed by Garcia and Foster, CPAs.
a. Determine if the analyses of account fluctuations was appropriately performed and completed. Review the explanations of account fluctuations provided by the auditors. Describe any problems you identify.
b. Determine if the ratio analysis was appropriately performed and completed. Review the explanations of ratio fluctuations provided by the auditors. Describe any problems you identify.