An example of an analytical procedure is the comparison of O Results of a statistical sample with the expected characteristics of the actual population. O Computer generated data with similar data generated by a manual accounting system. Recorded amounts of major disbursements with appropriate invoices. Financial information with similar information regarding the industry in which the entity operates.

An example of an analytical procedure is the comparison of O Results of a statistical sample with the expected characteristics of the actual population. O Computer generated data with similar data generated by a manual accounting system. Recorded amounts of major disbursements with appropriate invoices. Financial information with similar information regarding the industry in which the entity operates.

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter17: Other Services Provided By Audit Firms

Section: Chapter Questions

Problem 36RSCQ

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Auditors try to identify predictable relationships when using analytical procedures. Relationships involving transactions from which of the following accounts would most likely yield the highest level of evidence? a. Accounts receivable. O b. Interest expense. O c. Travel and entertainment expense. O d. Accounts payable.
Auditors try to identify predictable relationships when using analytical procedures. Relationshiipss involvingtransactions fromwhich of the following accounts most likely would yield the highest level of evidence? a. accounts receivable b. interest expense c. accounts payable d. Travel and entertainment expense
Analytical procedures are generally used to produce evidence froma. Confirmations mailed directly to the auditors by client customers.b. Physical observation of inventories.c. Relationships among current financial balances and prior balances, forecasts, and nonfinancial data.d. Detailed examination of external, external-internal, and internal documents.
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What is the purpose of analytical reviews in the audit of revenue cycle accounts? Please give an example.
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