The application of analytical procedures to the audit of inventories is often:
A) not very useful.
B) the only procedure necessary.
C) a requirement of the standards.
D) used extensively.

Question

Quizplus · Accepted Answer

Analytical procedures are used extensively in the audit of inventories to understand inventory levels, turnover rates, and other related metrics. These procedures help auditors assess the reasonableness of inventory amounts and may highlight areas requiring further investigation.

The Application of Analytical Procedures to the Audit of Inventories