When the auditor scans the sales journal looking for large and unusual transactions,he is gathering what type of evidence?
A)inspection
B)recalculation
C)physical examination
D)analytical procedures

Question

Quizplus · Accepted Answer

When the auditor is scanning the sales journal looking for large and unusual transactions, he is performing analytical procedures. Analytical procedures are a type of substantive procedure that involves comparing actual results with expectations, identifying significant fluctuations or variances, and investigating the reasons for those variances. By scanning the sales journal for large or unusual transactions, the auditor is looking for such fluctuations or variances. This helps to identify potential risks or errors in the financial statements that need further investigation.

When the Auditor Scans the Sales Journal Looking for Large