When the auditor performs analytical procedures
A)he evaluates the financial statements in the prior year by analyzing relationships between both financial and nonfinancial data.
B)he evaluates the financial statements in the current year by analyzing relationships between both financial and nonfinancial data.
C)he reviews the financial statements in the prior year by evaluating relationships between both financial and nonfinancial data.
D)he reviews the financial statements in the current year by evaluating relationships between both financial and nonfinancial data.

Question

Quizplus · Accepted Answer

Analytical procedures involve evaluating financial information by analyzing the relationships between both financial and nonfinancial data. This is typically done for the current year's financial statements to identify any areas that may need further investigation or to provide assurance on the financial information.

When the Auditor Performs Analytical Procedures