Income statement accounts resulting from allocations are typically verified as a part of:
A) tests of controls.
B) substantive tests of transactions.
C) analytical procedures.
D) planning.

Question

Quizplus · Accepted Answer

Analytical procedures are used to verify income statement accounts resulting from allocations by comparing recorded amounts to expected amounts based on historical data, budgets, or industry standards.

Income Statement Accounts Resulting from Allocations Are Typically Verified as a Part