Generally Accepted Auditing Standards States That Analytical Procedures

question 61

Multiple Choice

Generally accepted auditing standards states that analytical procedures:

• A)should be applied in the planning and final review stages of the audit and as a substantive test during the audit.
• B)should be applied in the planning and final review stages of the audit and can be used as a substantive test during the audit.
• C)should be applied in the planning stage and can be applied as a substantive test and in the final review stage.
• D)should be applied in the final review stage, and can be applied as a substantive test and in the planning stage.

---

Definitions:

Stockholders

Individuals or entities that own shares of a corporation, thus holding part ownership and potential financial gains from the corporation's performance.

Book Value

Represents the value of a company as recorded on its books, calculated by subtracting total liabilities from total assets.

Market Value

The current value of an asset or company based on the price that it can be sold for on the open market.

Historical Cost

The initial cost of an asset or investment when it was first purchased.