The Auditor Performs Analytical Procedures to

question 68

Multiple Choice

The auditor performs analytical procedures to

• A)increase his understanding of the accounting system
• B)identify unexpected changes between his expectations for the current year and the prior year
• C)identify areas where he believes the risk of material misstatement might not be present
• D)satisfy the requirement of the auditing standards to use analytical procedures during the testing stage

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Definitions:

Proposed Solution

A recommendation or plan put forward to solve a problem or address an issue.

Chronological Report

A report that presents events or progress in the order in which they occurred, from earliest to most recent.

Events

Occurrences or activities, planned or spontaneous, which are notable for participation or observation.

Organizational Patterns

Structured frameworks that dictate the arrangement of ideas and information in writing or speech to effectively communicate the message.