Loose-leaf For Auditing & Assurance Services: A Systematic Approach
11th Edition
ISBN: 9781260687637
Author: William F Messier Jr, Steven M Glover Associate Professor, Douglas F Prawitt Associate Professor
Publisher: McGraw-Hill Education
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Question
Chapter 17, Problem 17.6RQ
To determine
Concept Introduction:
Analytical procedure is applied to compare the trend of financial item. This procedure helps the auditor to identify the material variances and audit areas that need special considerations. The audit uses technical or non technical methods to perform this analysis.
To indicate:The relevance of analytical procedure of overall financial statements.
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Students have asked these similar questions
What creates the demand for financial statement audit?
In developing relationships among balance sheet accounts when reviewing the financial statements of anentity, what type of analytical procedure would an auditor most likely use? Select one:
a.
Ratio analysis.
b.
Trend analysis.
c.
Risk analysis.
d.
Regression analysis.
Why is it critical to have a consistent foundation for financial statement preparation? Explain.
Chapter 17 Solutions
Loose-leaf For Auditing & Assurance Services: A Systematic Approach
Ch. 17 - Prob. 17.1RQCh. 17 - Prob. 17.2RQCh. 17 - Prob. 17.3RQCh. 17 - Prob. 17.4RQCh. 17 - Prob. 17.5RQCh. 17 - Prob. 17.6RQCh. 17 - Prob. 17.7RQCh. 17 - Prob. 17.8RQCh. 17 - Prob. 17.9RQCh. 17 - Prob. 17.10RQ
Ch. 17 - Prob. 17.11RQCh. 17 - Prob. 17.12RQCh. 17 - Prob. 17.13MCQCh. 17 - Prob. 17.14MCQCh. 17 - Prob. 17.15MCQCh. 17 - Prob. 17.16MCQCh. 17 - Prob. 17.17MCQCh. 17 - Prob. 17.18MCQCh. 17 - Prob. 17.19MCQCh. 17 - Prob. 17.20MCQCh. 17 - Prob. 17.21MCQCh. 17 - Prob. 17.22PCh. 17 - Prob. 17.23PCh. 17 - Prob. 17.24PCh. 17 - Prob. 17.25PCh. 17 - Prob. 17.26PCh. 17 - Prob. 17.27PCh. 17 - Prob. 17.28P
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Similar questions
- How does an audit of financial statements pertain to agency theory?arrow_forwardComment on the statement that materiality is in the eye of the beholder. How does this statement relate to the discussion in this chapter of how to gauge materiality in assessing financial statement restatements? Is materiality inconsistent with the notion of representational faithfulness?arrow_forwardDoes computerization of data processing affect the objective of financial statement audit? Discuss.arrow_forward
- Explain the importance of analytical procedures as evidence indetermining the fair presentation of the financial statements.arrow_forwardRegarding special-purpose frameworks, (a) why do they exist, and (b) can financial statementsprepared using special-purpose frameworks be audited?arrow_forwardWhat substantive analytical procedures might an auditor use to perform an analytical procedure for accounts payable? Please provide reference(s).arrow_forward
- Why is it so important to choose auditors at the proper moment for a financial statement audit to be successful?arrow_forwardWhich of the following is least likely to be appropriate as the basis for determining the preliminary judgment about materiality in the audit of financial statements? revenues losses assets current liabilitiesarrow_forwardHow do auditors audit accounting estimates and other subjective information?arrow_forward
- In your opinion, what is the most important statement in the financial statements that a financial analyst will use as the reference in assessing the company’s assets and liabilities? Justify your opinion with reason/s.arrow_forwardWhat's the importance of considering the audience for financial statement analysis?arrow_forward8. What is the definition of analytical procedures? What is timing of analytical procedures in a financial statement audit?arrow_forward
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