Analytical procedures are used
A) To set materiality limits.
B) To assess the reasonableness of financial statement amounts.
C) To provide direct evidence about the numbers in the financial statements.
D) To test internal controls.

Question

Quizplus · Accepted Answer

Analytical procedures are used to assess the reasonableness of financial statement amounts by comparing them to expectations developed by the auditor. This is a substantive testing procedure and is not used to set materiality limits, provide direct evidence or test internal controls.

Analytical Procedures Are Used