'Evaluations of financial information made through analysis of plausible relationships among both financial and nonfinancial data' is a definition of:
A) tests of transactions.
B) analytical procedures.
C) tests of balances.
D) auditing.

Question

Quizplus · Accepted Answer

The definition provided is of analytical procedures, a type of audit procedure used to evaluate financial information by analyzing plausible relationships among both financial and nonfinancial data. Tests of transactions and tests of balances are other types of audit procedures that focus on testing the accuracy and completeness of individual transactions and account balances, respectively. Auditing is a broader term that encompasses all types of audit procedures performed to gather evidence and express an opinion on financial statements.

'Evaluations of Financial Information Made Through Analysis of Plausible Relationships