Which of the following procedures is not a typical analytical procedure?
A)Study of relationships of the financial information with relevant non-financial information.
B)Comparison of the financial information with similar information regarding the industry in which the entity operates.
C)Comparison of recorded amounts of major disbursements with appropriate invoices.
D)Comparison of the financial information with budgeted amounts.

Question

Quizplus · Accepted Answer

Comparison of recorded amounts of major disbursements with appropriate invoices is a test of details procedure, not an analytical procedure. Analytical procedures are used to study relationships and trends in financial information, whereas test of details procedures are used to test the accuracy and completeness of individual transactions and account balances. A, B, and D are all analytical procedures commonly used by auditors.

Which of the Following Procedures Is Not a Typical Analytical