Which procedure is not a typical analytical procedure? A)Study of relationships of the financial information with relevant nonfinancial 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 controls procedure, which is used to determine whether the controls in place are operating effectively and efficiently. The other procedures listed are typical analytical procedures used in financial statement audit engagements.

Which Procedure Is not a Typical Analytical Procedure