An analytical procedure example is the comparison of:
A)Financial ratios of the current year to previous years.
B)Recorded amounts of major disbursements with appropriate invoices.
C)Results of a statistical sample with the expected characteristics of the actual population.
D)EDP generated data with similar data generated by a manual accounting system.

Question

Quizplus · Accepted Answer

Comparing financial ratios of the current year with previous years provides valuable information about the financial performance of a company over time. It helps identify trends, areas of improvement, and potential issues that need to be addressed. This analytical procedure is commonly used by auditors and financial analysts to assess the financial health of an organization. The other options listed (B, C, and D) are also types of analytical procedures but may not be as relevant or applicable in all situations.

An Analytical Procedure Example Is the Comparison Of