Daniel Morency has performed evaluations of financial information and determined whether the fluctuations of his client's sales figures are consistent with other data he has gathered. He has used this information to predict year-end amounts of sales. This is an example of substantive procedures called
A) tests of details.
B) computer assisted audit techniques.
C) analytical procedures.
D) none of the above

Question

Quizplus · Accepted Answer

The described procedure is a type of substantive analytical procedures, which involve comparing financial information with other data to assess the reasonableness and consistency of reported amounts. This type of procedure is commonly used in auditing to gather evidence about the financial statements and detect potential misstatements. Tests of details refer to specific tests performed on individual transactions or account balances, while computer assisted audit techniques (CAATs) are tools that help auditors process large amounts of data efficiently. Therefore, choices A and B are not the best options.

Daniel Morency Has Performed Evaluations of Financial Information and Determined