Analytical procedurthat provide persuasive evidence include:
A) reviewing the cash accounts in the general ledger for unusual items.
B) relating average amounts invested to an average interest rate.
C) comparing the number of days purchases in trade payables with prior years.
D) reviewing the property, plant and equipment account in the general ledger for unusual items.

Question

Quizplus · Accepted Answer

Relating average amounts invested to an average interest rate is an analytical procedure that provides persuasive evidence by comparing financial data to expected relationships, which can indicate potential misstatements.

Analytical Procedurthat Provide Persuasive Evidence Include