The auditor would design which of the following audit tests to detect possible monetary errors in the financial statements?
A)Control tests
B)Analytical procedures
C)Risk assessment procedures
D)Tests of operating effectiveness of controls over revenue and cash

Question

Quizplus · Accepted Answer

Analytical procedures are specifically designed to detect monetary errors in the financial statements by comparing current year balances to prior year balances or industry averages. Control tests and tests of operating effectiveness focus on the effectiveness of internal controls, while risk assessment procedures evaluate the potential risk of material misstatements.

The Auditor Would Design Which of the Following Audit Tests