Auditors frequently use account analysis in auditing expenses.

Question

Quizplus · Accepted Answer

Account analysis is a commonly used technique in auditing expenses. It involves reviewing individual expense accounts to ensure that the transactions recorded are properly supported, accurately recorded, and classified correctly. This helps auditors to identify errors or irregularities and to assess the risk of material misstatement in the financial statements. Therefore, option A is correct.

Auditors Frequently Use Account Analysis in Auditing Expenses