Analytical Procedures Conducted at the End of an Audit Are

question 24

Multiple Choice

Analytical procedures conducted at the end of an audit are performed to examine trends and changes. What is typically another purpose of analytical procedures at the end of the audit?

• A) To document planning in accordance with GAAS.
• B) To provide the client with a value added service in conjunction with audit activities.
• C) To ask "hard questions" about the company's results and its relationship to external factors.
• D) To increase the amount of items reported in the management letter.

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Definitions:

Credit Sales

Sales made on credit, where the payment is received after the delivery of goods or services.

Cash Budget

A forecast of cash inflows and outflows over a specific period, used to manage the company's cash flow and ensure financial stability.

Cash Disbursements

Financial transactions involving the outflow of cash, typically from an entity to vendors or employees, for expenses or purchases.

Beginning Cash Balance

The Beginning Cash Balance is the amount of cash that a company has at the start of a new accounting period, carried over from the end of the previous period.