Which of the Following Is True About Analytical Procedures

question 14

Multiple Choice

Which of the following is true about analytical procedures?

• A)Performing analytical procedures results in the most reliable form of evidence.
• B)Analytical procedures are tests of controls used to evaluate the quality of a client's internal control.
• C)Analytical procedures are used for planning,but they should not be used to obtain evidence as to the reasonableness of specific account balances.
• D)Analytical procedures are used in risk assessment,as a substantive procedure for specific accounts,and near the completion of the audit of the audited financial statements.

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Definitions:

Trade Discount

A reduction in the retail price of goods, granted by the wholesaler or manufacturer to the retailer for the purpose of resale.

Trade Discount

A reduction from the list price granted by a seller to a buyer, typically for bulk purchases or to business customers in a particular industry.

Trade Discount

A reduction in the listed price of goods or services, offered by sellers to buyers in the business-to-business market.

Real Estate Commission

The fee, typically a percentage of the sale price, paid to a real estate agent or broker for their services in selling a property.