Analytical Procedures

question 62

Multiple Choice

Analytical procedures:

• A)are not a type of audit evidence.
• B)are not required during the completion phase of the audit.
• C)performed during the planning phase of the audit are used as a substantive test in support of account balances.
• D)performed in the completion phase serve as a final review for material misstatements or financial problems.

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within a year or the business cycle, whichever is longer.

Fixed Assets

Long-term tangible assets used in the operation of a business and not expected to be converted into cash within a year.

Return on Investment

measures the gain or loss generated from an investment relative to its cost, providing insight into the efficiency of the investment.

Profit Centre Managers

Individuals responsible for overseeing profit centres, areas within a business that are directly responsible for generating revenue exceeding their operating costs.