Analytical procedures are those that
A) evaluate the accuracy of the account balances.
B) assess the overall reasonableness of account balances or other data.
C) review the effectiveness of internal controls.
D) analyze the effect of management procedures on the accounting system.

Question

Quizplus · Accepted Answer

Analytical procedures are primarily used to assess the overall reasonableness of account balances or other data, by comparing them with expectations based on prior periods or industry norms. While they may involve evaluating the accuracy of the account balances, as well as reviewing the effectiveness of internal controls, these are not the primary objectives of analytical procedures. Analyzing the effect of management procedures on the accounting system may be a related objective, but this is not typically the main focus of analytical procedures.

Analytical Procedures Are Those That