Analytical Procedures Are Essential for Borrowings Because

question 91

Multiple Choice

Analytical procedures are essential for borrowings because:

• A) there are few internal controls in this area which the auditor can rely upon to reduce substantive testing.
• B) of the paucity of documentation in this area.
• C) the large quantity of transactions would make this an expensive area to audit if some other means of reducing tests were not available.
• D) tests of details for interest expense and accrued interest can frequently be eliminated when results are favourable.

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Definitions:

Past Fact

Information or events that have already occurred and are considered in the making of decisions or judgment.

Undue Influence

Improper or unfair persuasion by one party over another, often resulting in decisions or agreements that benefit the influencer.

Clergyman

A male priest, minister, or religious leader, especially one authorized to perform sacred rituals and ceremonies in Christian denominations.

Emotional Susceptibility

A person's tendency to be easily affected by emotional experiences or to be more sensitive to emotional stimuli.