Analytical procedures may be classified as being primarily:
A)tests of control.
B)detailed tests of balances.
C)tests of ratios.
D)substantive tests.

Question

Quizplus · Accepted Answer

Analytical procedures are primarily used as substantive tests that help auditors to assess the reasonableness of account balances, transactions, and other financial information. They involve comparison of recorded amounts with expected or benchmark values derived from other financial data. This helps in detecting discrepancies or unusual fluctuations that require further investigation. Analytical procedures are not tests of control, detailed tests of balances, or tests of ratios, although these techniques may be used in combination with analytical procedures.

Analytical Procedures May Be Classified as Being Primarily