Which of the following statements is an analytical procedure?
A)Analytical procedures are a form of evidence gathered by the client
B)Analytical procedures are calculations of financial amounts
C)Analytical procedures are a comparison of last year's unaudited financial statements with the current year's audited statements
D)Analytical procedures are a form of substantive audit procedure

Question

Quizplus · Accepted Answer

Analytical procedures are used by auditors as part of the substantive audit procedures to assess financial information by studying plausible relationships among both financial and non-financial data. They are not solely calculations or comparisons of financial amounts, nor are they evidence gathered by the client.

Which of the Following Statements Is an Analytical Procedure