When performing planning analytical procedures related to long-lived assets,which of the following should the auditor compare the unaudited financial statements with?
A)Past results.
B)Industry trends.
C)Future company projections.
D)Both A and B.

Question

Quizplus · Accepted Answer

When performing planning analytical procedures related to long-lived assets, the auditor should compare the unaudited financial statements with past results and industry trends. By comparing past performance, the auditor can identify any significant changes or anomalies in the company's financial position. Industry trends can provide a benchmark for comparison and help identify any potential issues or areas for concern. Comparing future company projections is not appropriate as these are unaudited and cannot be verified by the auditor. Therefore, the best choice is D, both A and B.

When Performing Planning Analytical Procedures Related to Long-Lived Assets,which of the Following