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

Question

Quizplus · Accepted Answer

Comparing financial information with similar information regarding the industry in which the entity operates is an example of an analytical procedure. This helps to identify significant fluctuations or trends in key financial ratios or indicators, which can provide insights into the entity's financial health and performance compared to its peers or competitors.

An Example of an Analytical Procedure Is the Comparison Of