List three substantive analytical procedures that the auditor might use in auditing the income statement

Three substantive analytical procedures that the auditor might use in auditing the income statement include:

•  Use the prior years' trends in quarterly dollar amounts for each significant revenue and expense account (e.g., disaggregate revenue by product or location) to develop an expectation for the current year.
•  Calculate the ratio of individual expense accounts to net sales and comparing these percentages across years.
•  Perform substantive analytical procedures of specific revenue or expense accounts (e.g., sales commissions can be tested by using the entity's commission schedule and multiplying the commission rates times eligible sales).