Analytical Procedures

question 12

Multiple Choice

Analytical procedures

• A) performed during the audit planning phase generally use aggregated data at a high level.
• B) are never performed during the testing phase of an audit.
• C) are declining in importance as a type of audit evidence.
• D) performed during the audit planning stage help the auditor take a final objective look at the audited financial statements.

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Definitions:

Preponderance of the Evidence

A standard of proof in civil cases, requiring that a party's evidence is more convincing than the opponent's evidence to win the case.

Advisory

Providing suggestions, recommendations, or guidance, often from a position of expertise.

Mandatory

Required by law or rules; obligatory, leaving no room for personal discretion or choice.

Massive Overstock

Describes a situation where a retailer or inventory-based business holds a significantly larger quantity of products than needed or demanded, leading to excess stock.