Question

Question 04 Based on Lin et al. (1984). You have been hired by Arthur Ross to determine which of the following ac- counts receivable methods should be used in an audit of the Keating Five and Dime Store: analytic review (method 1), confirmations (method 2), or test of subsequent collections (method 3). The three criteria used to distinguish among the methods are reliability cost, and validity. The pairwise comparison matrix for the three criteria is shown in the file PO9 32.xlsx. The pairwise comparison matrices of the three accounting methods for the three criteria are shown in this file. Use AHP to determine which auditing procedure should be used. Also check the first pairwise compari son matrix for consistency Choosing an accounts receivable method Pairwise comparisons among objectives Normalized matri Weights Product Reliability Cost alidity Cost CIRI Mcthod Mcthod 2 Mcthod 3 Method I Method2 Method 3 comparisons among methods on cost Mcthod Method 2 Mcthod3 Method1 Method 2 Method Pairwise comparisons among methods on validity Normalized matri Method I Mcthod 2 Method 3 Method I Method 2 Method 3 Determining best methord Matrix of scores Overall scores ost Validity Method 2 Method3

Answer 1

We choose method(3).On which basis we can collect all the necessary information regarding audit.