An example of an analytical procedure is the comparison of:
A)recorded amounts of major disbursements with appropriate invoices.
B)results of a statistical sample with the expected characteristics of the actual population.
C)computer-generated data with similar data generated by a manual accounting system.
D)financial information with similar information regarding the industry in which the entity operates.

Question

Quizplus · Accepted Answer

Analyzing financial information with similar information regarding the industry in which the entity operates is an analytical procedure. This helps to identify any significant deviations and can help in making a comparison and evaluating the financial position of an entity in the industry. Option A and C are not analytical procedures, while option B refers to statistical sampling which is not necessarily an analytical procedure in itself.

An Example of an Analytical Procedure Is the Comparison Of