Based on Lin et al. (1984). You have been hired by Arthur Ross to determine which of the…

Based on Lin et al. (1984). You have been hired by Arthur Ross to determine which of the following accounts 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 P16_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 comparison matrix for consistency.

 

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