Analytical procedures are generally used to produce evidence from
A)physical observation of inventories.
B)relationships among current financial balances and prior balances,forecasts,and nonfinancial data.
C)detailed examination of external and internal documents.
D)confirmations mailed directly to the auditors by auditee customers.

Question

Quizplus · Accepted Answer

Analytical procedures involve analyzing relationships between current financial balances and prior balances, forecasts, and nonfinancial data to produce evidence. They can be used to identify unusual fluctuations or patterns, which may indicate potential risks or errors in the financial statements. The other options listed do not describe analytical procedures specifically.

Analytical Procedures Are Generally Used to Produce Evidence from