'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) tests of balances.
C) auditing.
D) analytical procedures.

Question

Quizplus · Accepted Answer

The definition given in the question is of analytical procedures, which are used as a form of substantive testing in an audit. Therefore, the correct answer is D, analytical procedures. Choices A and B refer to specific types of audit testing that may be used in combination with analytical procedures. Choice C, auditing, is too general a term and does not specifically relate to the definition given.

'Evaluations of Financial Information Made Through Analysis of Plausible Relationships