Analytical procedures are generally used to produce evidence from
A) Confirmations mailed directly to the auditors by client customers.
B) Physical observation of inventories.
C) Relationships among current financial balances and prior balances, forecasts, and nonfinancial data.
D) Detailed examination of external, external-internal, and internal documents.

Question

Quizplus · Accepted Answer

Analytical procedures involve analyzing relationships among current financial balances and prior balances, forecasts, and nonfinancial data. They are used to produce evidence about the reasonableness of financial statement balances and to identify potential misstatements that may require further investigation. This method is different from other options mentioned in the answer choices.

Analytical Procedures Are Generally Used to Produce Evidence from