1. analytical procedures Information from Analytical Procedures: a defensive necessity by Frank Coglitore and R. Glen Berryman

2. Flight Transportation Corp. FTC, an air charter carrier, reported revenues in excess of the revenue generating capacity of their available aircraft.

3. FTC’s fleet of planes did not have the physical capacity to generate the amount of revenue claimed. FTC provided the auditor documents which stated that 120 flights were made during the year. 12 during the first 3 quarters and 108 in the fourth quarter.

4. The auditors should have also considered the productivity of the pilots. At the time, pilots were legally limited to 1,000 hours of flying time each year. FTC would not have been able to fly the reported trips with the number of pilots it employed.

5. FTC reported these large increases in revenue at a time when both the economy and the airline industry were in the midst of a recession.

6. Saxon Industries Saxon reported $532,000 of copier paper in inventory at warehouse that only had the capacity to hold $200,000 of copier paper.

7. Mattel, Inc

8. Mattel reported 35% greater sales in Dec. of 1971 that in Dec. of 1970. Sales for the preceding three months were 30% lower than the same period of 1970.

9. Florafax International Florafax sold floral containers to retail florists and provided various services related to its flowers- by-wire network.

10. Florafax overstated sales by shipping products in connection with a holiday container program without customer authorization with an unconditional right of return

11. Sales returns associated with this program ranged from 28% to 69% Auditors merely needed to compare sales returns in January with sales returns for the first month of the preceding year.