An example of an analytical procedure is the comparison of:
A)financial information with similar information regarding the industry in which the entity operates.
B)recorded amounts of major disbursements with appropriate invoices.
C)results of a statistical sample with the expected characteristics of the actual population.
D)EDP generated data with similar data generated by a manual accounting system.

Question

Quizplus · Accepted Answer

This is because comparing financial information with similar information regarding the industry in which the entity operates involves analyzing and interpreting data to draw conclusions about the entity's financial performance and position in comparison to its industry peers, which is a typical analytical procedure. The other options do not necessarily involve analytical procedures - B involves vouching and tracing, C involves statistical sampling, and D involves testing the effectiveness and efficiency of the entity's accounting system.

An Example of an Analytical Procedure Is the Comparison Of