TABLE 19-3 Analytical Procedures for Manufacturing Equipment Analytical Procedure Possible misstatement Compare depreciation expense divided by gross Misstatement in depreciation expense and manufacturing equipment cost with previous years accumulated depreciation Compare accumulated depreciation divided by gross Misstatement in accumulated depreciation manufacturing equipment cost with previous years Compare monthly or annual repairs and Expensing amounts that should be maintenance, supplies expense, small tools expense, and similar accounts with previous years Compare gross manufacturing cost divided by some idle equipment or equipment that has measure of production with previous years. been disposed of, but not written off Arens, Loebbecke; Auditing, &/E @2000Prentice HalL,IncArens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc