Abstract This paper reports the results of a protocol study of five experienced auditors in the performance of an analytical review of the inventory account. The objectives of the study were to obtain detailed evidence of the nature of auditors' predecisional behaviors in employing analytical review, to obtain insight into the factors associated with performance, and to serve as a guide for the design and interpretation of future studies of auditors' use of analytical review. The results indicate in part that consistent use of the gross profit to sales ratio was associated with the best performance for the study cases. This and other results are discussed, and suggestions are made for future research.
Blocher et al. (Tue,) studied this question.