Which of the following is not a typical analytical procedure?
A) Study of relationships of the financial information with relevant nonfinancial information.
B) Comparison of the financial information with similar information regarding the industry in which the entity operates.
C) Comparison of recorded amounts of major disbursements with appropriate invoices.
D) Comparison of the financial information with budgeted amounts.

Question

Quizplus · Accepted Answer

Comparison of recorded amounts of major disbursements with appropriate invoices is not typically considered an analytical procedure. This task is more of a test of controls or a substantive test of transactions in the auditing process. A typical analytical procedure involves analyzing financial information for trends, relationships, or deviations from expectations to identify potential risks or areas of further audit focus. A, B, and D are all examples of typical analytical procedures.

Which of the Following Is Not a Typical Analytical Procedure