Which of the following are ordinarily designed to detect possible material monetary errors in the financial statements?
A) Tests of controls.
B) Analytical procedures.
C) Computer controls.
D) Post-audit review of audit documents.

Question

Quizplus · Accepted Answer

Analytical procedures are designed to detect possible material monetary errors in the financial statements. These procedures involve analyzing relationships and trends in financial data to identify any unusual or unexpected fluctuations that may indicate errors or fraud. Tests of controls are designed to test the effectiveness of internal controls, while computer controls are designed to prevent and detect errors in automated accounting systems. Post-audit review of audit documents is a review of the auditor's work after the audit is completed, and may not detect errors in the financial statements themselves.

Which of the Following Are Ordinarily Designed to Detect Possible