Which of the following is a procedure which analyzes plausible relationships among financial and nonfinancial data?
A)Analytical procedures.
B)Scanning.
C)Reviewing.
D)Observation.

Question

Quizplus · Accepted Answer

Analytical procedures refer to the evaluation of financial and nonfinancial data through analysis, comparison, and other techniques to identify possible material misstatements or inconsistencies. Scanning involves the quick review of data to identify any significant items that might require a closer look. Reviewing refers to the process of checking documentation or records for completeness, accuracy, and compliance with policies and procedures. Observation involves the physical inspection of processes or activities to ensure they are performed as intended.

Which of the Following Is a Procedure Which Analyzes Plausible