Analytical Procedures Consist of Evaluating Financial Information by Studying Financial

question 12

Essay

Analytical procedures consist of evaluating financial information by studying financial and nonfinancial data and looking for plausible or implausible relationships.The procedures can range from making simple comparisons to using complex models involving many relationships and elements of data.They can involve time-series comparisons of recorded amounts and ratios developed from recorded amounts,and they always include comparison to expectations developed by the 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:

Initiating Structure

The degree to which a leader clearly defines and structures their role and the roles of their subordinates towards achieving set objectives.

Consideration

In leadership or management, it refers to the extent to which a leader shows concern and care for employees' welfare, creating a supportive work environment.

Authoritarian Leadership

a leadership style characterized by individual control over all decisions, with little input from group members.

Informal Leaders

Refer to individuals within an organization or group who exert influence and have leadership qualities but do not hold official leadership positions.