The evaluations of financial information through analysis of plausible relationships among financial and nonfinancial data is the definition of
A) analytical procedures.
B) tests of transactions.
C) tests of balances.
D) auditing.

Question

Quizplus · Accepted Answer

Analytical procedures involve analyzing relationships among financial and nonfinancial data to evaluate the plausibility of financial information. Tests of transactions and balances are specific types of audit procedures, while auditing is the overall process of examining financial information.

The Evaluations of Financial Information Through Analysis of Plausible Relationships