Question

Which of the following would be considered an analytical procedure?

a. Conducting employee training
b. Reconciling physical counts
c. Setting office hours
d. Decorating the workplace

Answer 1

Reconciling physical counts is the analytical procedure, as it involves analysis and comparison of actual inventory with recorded amounts to ensure accurate financial reporting.

Step-by-step explanation:

Among the options provided, reconciling physical counts would be considered an analytical procedure. This procedure involves comparing the actual number of items in inventory, for example, with the recorded amounts to identify discrepancies, such as losses due to theft, damage, or errors in record-keeping. This process helps ensure the accuracy of financial statements related to inventory.