Analytical Procedures Are Substantive Procedures That May Be Used to Provide

question 37

Essay

Analytical procedures are substantive procedures that may be used to provide evidence about specific accounts and classes of transactions.
a.Describe three major types of comparisons the auditor might make in performing analytical procedures.
b.At what stages of the audit are analytical procedures performed and what purpose do they serve at each stage?

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Definitions:

Normal Model

A type of statistical distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Annual Snowfall

The total amount of snowfall recorded at a specific location over the course of a year.

Unusually Low

Describes values or measurements that are significantly lower than what is typical or expected within a given dataset or situation.

Normal Model

A commonly used probability distribution characterized by its bell-shaped curve, symmetric about the mean and describing many natural phenomena.