Which of the Following Is Not a Benefit of Analytical

question 10

Multiple Choice

Which of the following is not a benefit of analytical procedures?

• A)Assists in understanding a client's business and identifying areas of potential risk.
• B)Enables the auditor to review the financial and non-financial information of a client.
• C)May reduce the level of detailed audit testing if the control system surrounding the reliability of the information is strong.
• D)Provides adjustments to error levels during tests of control.

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Definitions:

Total Liabilities and Equity

The sum of all current and long-term liabilities along with owners' equity, representing the sources of a company's assets.

Exchange Rates

The price of one country's currency in terms of another's, influencing international trade and investment.

Amortization Expense

The systematic allocation of the cost of an intangible asset over its useful life.

Functional Currency

The currency of the primary economic environment in which an entity operates, most often used in measuring its financial performance and position.