When conducting a substantive analytical procedure, _______.
A)auditors develop an expectation, or estimate, using data in the auditor's records or data from reliable outside sources, and then compare the expectation with the client's recorded amount
B)auditors develop an expectation, or estimate, using data in the client's records or data from reliable outside sources, and then compare the expectation with the client's recorded amount.
C)auditors develop an expectation, or estimate, using data in the client's records or data from reliable internal sources, and then compare the expectation with the client's recorded amount.
D)the procedure should be approved by management beforehand

Question

Quizplus · Accepted Answer

Substantive analytical procedures involve using data from the client's records or reliable outside sources to develop an expectation or estimate, which is then compared to the client's recorded amount to identify potential misstatements or errors. It is important that auditors use reliable data sources and that the procedure is not influenced or controlled by management.

When Conducting a Substantive Analytical Procedure, _______