Analytical Procedures

question 101

Multiple Choice

Analytical procedures

• A) focus on the ending balances for income statement accounts.
• B) are only performed during the planning stage of the audit.
• C) are required to be performed when auditing an account balance.
• D) provide substantive evidence.

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Definitions:

Business

An organization or enterprising entity engaged in commercial, industrial, or professional activities.

Journal

A detailed record where all financial transactions of a business are initially recorded before being transferred to accounts in the ledger.

Chart of Accounts

A systematic list of all account titles and numbers used by a company to organize its financial transactions and prepare financial statements.

Debits

Accounting entries that increase asset or expense accounts, or decrease liability, equity, or revenue accounts; they are recorded on the left side of accounting ledgers.