Which of the following are two frequently used preliminary analytical procedures?
A) Reasonableness tests and economic analyses.
B) Trend analyses and reasonableness tests.
C) Ratio analyses and economic analyses.
D) Ratio analyses and trend analyses.

Question

Quizplus · Accepted Answer

Ratio analyses and trend analyses are two commonly used preliminary analytical procedures in auditing. Ratio analyses involve computing ratios using financial statement data to identify unusual relationships or trends. Trend analyses involve the comparison of financial statement data over time to identify changes or unusual patterns.

Which of the Following Are Two Frequently Used Preliminary Analytical