ASA 520 states that analytical procedures can be used as:
A) helpful procedures not possessing the validity of other tests available to the auditor.
B) substantive tests.
C) compliance tests.
D) tests of controls.

Question

Quizplus · Accepted Answer

ASA 520 states that analytical procedures can be used as substantive tests, meaning they can provide evidence to support the auditor's assertion about the financial statement balances or transactions. They cannot be used as tests of controls or compliance tests. Choice A is incorrect because analytical procedures are considered valid procedures.

ASA 520 States That Analytical Procedures Can Be Used As