Which of the Following Statements Is Not Correct with Respect

question 92

Multiple Choice

Which of the following statements is not correct with respect to analytical procedures?

• A)Auditing standards emphasize the need for auditors to develop and use expectations.
• B)Analytical procedures must be performed throughout the audit.
• C)Analytical procedures may be performed at any time during the audit.
• D)Analytical procedures use comparisons and relationships to assess whether account balances appear reasonable.

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Definitions:

Aging Schedule

An aging schedule is a method used in accounting to categorize accounts receivables based on the length of time an invoice has been outstanding, aiding in the management of a company's debts.

Cash Discount

A deduction that a payer can take from the invoice amount if payment is made within a specified period.

Collection Policy

A set of guidelines that a company follows to manage the collection of accounts receivable or outstanding invoices.

Aging Schedule

A methodical layout of a company's accounts receivable broken down by their due dates, typically used to manage and identify overdue accounts that may become uncollectable.