Which of the Following Is an Analytical Procedure That an Auditor

question 988

Multiple Choice

Which of the following is an analytical procedure that an auditor most likely would perform when planning an audit?

• A) Confirming bank balances with the financial institutions.
• B) Scanning accounts receivable for amounts over credit limits.
• C) Recalculating inventory extensions of physical inventory counts.
• D) Comparing the current-year account balances for conformity with predictable patterns.

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Definitions:

Contract

A contract is a legally binding agreement between two or more parties that specifies their obligations and the consequences for failing to fulfill those obligations.

Accident

An unplanned, unforeseen event causing damage or injury.

Apprenticeship

A system of training a new generation of practitioners of a trade or profession with on-the-job training and often some accompanying study.

Contract

A binding legal arrangement agreed upon by two or more parties, enforceable through legal action.