Analytical Procedures Consist of Evaluations of Financial Information Made by a Study

question 66

Essay

Analytical procedures consist of evaluations of financial information made by a study of plausible relationships among both financial and nonfinancial data.They range from simple comparisons to the use of complex models involving many relationships and elements of data.They involve comparisons of recorded amounts,or ratios developed from recorded amounts,to expectations developed by auditors.
Required:
a.Describe the broad purposes of analytical procedures.
b.Identify the sources of information from which an auditor develops expectations.

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Definitions:

Trapezius Muscle

A large muscle on the back of the neck and upper back that supports the arm and shoulder movements.

Lethargy

A state of tiredness, weariness, fatigue, or lack of energy, which can be a symptom of various medical conditions.

Hypotension

A condition characterized by abnormally low blood pressure, which can lead to symptoms such as dizziness and fainting.

Fungal Infection

An illness resulting from the invasion of fungi in the body, which can affect the skin, nails, or internal organs.