Which of the Following Describe Analytical Procedures in Audit Planning

question 88

Multiple Choice

Which of the following describe analytical procedures in audit planning?

• A)They are required in every audit.
• B)They are often effective in identifying potential misstatements in the financial statements.
• C)The most effective analytical procedures rely on the auditor's knowledge of the business and industry.
• D)They form an effective method but present a huge burden in relation to cost.

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Definitions:

Internal Referencing Strategy

A method of assessment or evaluation that compares current performance with past performances within the same entity.

Measured Outcomes

Refers to the specific, quantifiable results obtained from implementing strategies, programs, or interventions.

Organizational Outcomes

The results or impacts of organizational activities, including productivity, employee retention, profitability, and customer satisfaction.

Return on Expectations

Return on Expectations measures the qualitative outcomes of a project or investment based on predefined objectives and stakeholders' expectations.