Analytical procedures that provide persuasive evidence include
A) reviewing the cash accounts in the general ledger for unusual items.
B) relating average amounts invested to an average interest rate.
C) comparing the number of days purchases in trade payables with prior years.
D) reviewing the property, plant and equipment account in the general ledger for unusual items.

Question

Quizplus · Accepted Answer

Relating average amounts invested to an average interest rate can provide persuasive evidence as it involves calculations based on established relationships between different financial data. This analytical procedure can identify any discrepancies or irregularities that may suggest errors or potential fraud. The other options listed may also be helpful in detecting certain types of irregularities, but they are not necessarily as persuasive as relating average amounts invested to an average interest rate.

Analytical Procedures That Provide Persuasive Evidence Include