Reviewing capital budgets and comparing the amounts spent with amounts budgeted is an example of a substantive analytical procedure for auditing prepaid accounts.

Question

Quizplus · Accepted Answer

Substantive analytical procedures involve evaluating financial information through analysis of plausible relationships among both financial and non-financial data. Reviewing capital budgets and comparing amounts spent with amounts budgeted is more related to compliance or operational auditing, focusing on adherence to policies or efficiency, rather than directly testing the balances of prepaid accounts as would be typical in substantive procedures for those accounts.

Reviewing Capital Budgets and Comparing the Amounts Spent with Amounts