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

Question

Quizplus · Accepted Answer

Analytical procedures can be used as substantive tests, which are tests that provide evidence about the completeness, accuracy, and validity of account balances, transactions, and disclosures in the financial statements. This is generally done by comparing recorded amounts to expectations based on prior periods or other sources of information. While analytical procedures can also be used for other purposes, such as as risk assessment procedures or as a means to obtain a general understanding of the client's operations, they are most commonly used as substantive tests.

ASA 520 States That Analytical Procedures Can Be Used As