The usefulness of analytical procedures as audit evidence depends significantly on appropriate comparison data.

Question

Quizplus · Accepted Answer

The effectiveness and reliability of analytical procedures as audit evidence depend on the accuracy and appropriateness of the comparison data used. If the comparison data is not reliable, relevant, or appropriate, then the analytical procedures may not provide sufficient audit evidence to support the auditor's conclusions. Therefore, it is crucial to use proper comparison data when performing analytical procedures during the audit.

The Usefulness of Analytical Procedures as Audit Evidence Depends Significantly