Analytical Procedures Used in the Overall Review Stage of an Audit

question 22

Multiple Choice

Analytical procedures used in the overall review stage of an audit generally include:

• A) testing transactions to corroborate management's financial report assertions.
• B) considering unusual or unexpected amount balances that were not previously identified.
• C) retesting control procedures that appeared to be ineffective during the assessment of control risk.
• D) gathering evidence concerning account balances that have not changed from the prior year.

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Definitions:

Income-Producing

Refers to assets or activities that generate earnings, profit, or revenue.

Real Property

Land and anything permanently attached to it, including buildings and structures, classified legally as immovable.

Principle

A fundamental truth or proposition that serves as the foundation for a system of belief or behavior.

Interest

The charge for the privilege of borrowing money, typically expressed as an annual percentage of the principal.