Which of the following are the main types of analytical procedures used by auditors?
A)the auditor calculates the financial statement numbers for the current year and the previous year
B)the auditor compares the financial statement transactions for the current year to the previous year
C)the auditor compares the financial statement numbers for the current year to the previous year
D)the auditor calculates financial ratios for the current balance sheet and compares them to ratios for the prior year income statement
E)the auditor calculates financial ratios for the current financial statements and compares them to ratios for the prior year financial statements
F)both A and B
G)both C and E
H)both D and E

Question

Quizplus · Accepted Answer

The main types of analytical procedures used by auditors include comparing financial statement numbers for the current year to the previous year (Option C), calculating financial ratios for the current financial statements and comparing them to ratios for the prior year financial statements (Option E). Therefore, option G (both C and E) is the best choice. Option A and B are incorrect as the auditor does not calculate financial statement numbers for the current year and the previous year or compare financial statement transactions for the current year to the previous year. Option D is incorrect as the auditor does not calculate financial ratios for the current balance sheet and compare them to ratios for the prior year income statement.

Which of the Following Are the Main Types of Analytical