When auditing financial instruments, analytical procedures can be used to
A) test the reasonableness of interest and dividend income.
B) test the year-end balance.
C) determine if the financial instruments were properly valued.
D) determine if the gain or loss on the sales were properly computed.

Question

Quizplus · Accepted Answer

Analytical procedures can be used to test the reasonableness of interest and dividend income by comparing expected returns based on known interest rates or dividend yields with the actual recorded amounts.

When Auditing Financial Instruments, Analytical Procedures Can Be Used to