Stella Zhang has been performing analytical procedures techniques as a substantive test. The techniques that can be used to perform analytical procedures are
A) preparation of common sized financial statements.
B) break-even analysis.
C) ratio analysis.
D) all of the above

Question

Quizplus · Accepted Answer

All of the techniques mentioned (preparation of common sized financial statements, break-even analysis, and ratio analysis) can be used to perform analytical procedures as substantive tests. Common sized financial statements can reveal trends and identify significant changes in account balances, while break-even analysis can help determine the point at which revenue equals expenses. Ratio analysis can be used to compare financial information across time or against industry benchmarks, and can help identify potential areas of concern.

Stella Zhang Has Been Performing Analytical Procedures Techniques as a Substantive