Analytical Procedures Are Used by the Auditor To

question 45

Multiple Choice

Analytical procedures are used by the auditor to:

• A)focus his or her attention on accounts where possible fraud exists
• B)focus his or her attention on accounts where the possibility of material misstatements is greatest
• C)focus his or her attention on accounts where procedures are inadequate
• D)focus his or her attention on accounts with unexpected change in the current year compared to the prior year

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Definitions:

Inside Columns

The columns found within the main body of a financial document, used to detail transactions before summarizing the total.

Subtotals

Intermediate totals calculated by adding up a group of numbers, often used to make data analysis easier within financial documents or spreadsheets.

Accumulated Depreciation

The cumulative depreciation of an asset up to a single point in time, representing the decrease in its value due to wear and tear.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing insights into its financial position.