Which of the following would not be classified as an analytical procedure?
A)Benchmarking the company's profitability ratios against others in the industry
B)Variance analysis of actual versus budgeted amounts for production
C)Reperforming the client's depreciation expense using the client's accounting policies for capital expenditures made during the year
D)Reconciling fixed asset dispositions with the fixed asset ledger

Question

Quizplus · Accepted Answer

Reconciling fixed asset dispositions with the fixed asset ledger is a test of accuracy and completeness, rather than an analytical procedure. Analytical procedures involve the comparison of financial information with expectations developed by the auditor. Choices A, B, and C involve such comparisons and would be classified as analytical procedures.

Which of the Following Would Not Be Classified as an Analytical