Analytical Procedures Performed in the Overall Review Stage of an Audit

question 318

Multiple Choice

Analytical procedures performed in the overall review stage of an audit suggest that several accounts have unexpected relationships. The results of these procedures most likely would indicate that:

• A) Irregularities exist among the relevant account balances.
• B) Internal control activities are not operating effectively.
• C) Additional tests of details are required.
• D) The communication with those charged with governance should be revised.

---

Definitions:

Family Car

A vehicle designed primarily for the transportation of a family, typically offering increased seating space and safety features.

Common Stock

Refers to a type of ownership in a corporation that entitles shareholders to share in the company's profits through dividends and/or capital appreciation.

Photography Equipment

Includes cameras, lenses, tripods, lighting, and other accessories used for capturing photos.

Stockholders' Equity

The residual interest in the assets of a corporation after all liabilities have been deducted, often referred to as shareholder's equity or owners' equity.