Which of the Following Statements Is an Analytical Procedure

question 52

Multiple Choice

Which of the following statements is an analytical procedure?

• A)Analytical procedures are a form of evidence gathered by the client
• B)Analytical procedures are calculations of financial amounts
• C)Analytical procedures are a comparison of last year's unaudited financial statements with the current year's audited statements
• D)Analytical procedures are a form of substantive audit procedure

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Definitions:

Trial Balance

A trial balance is a bookkeeping report that lists the balances in each of an organization's general ledger accounts.

General Ledger

A complete record of all financial transactions over the life of a company, serving as the primary source for generating financial statements.

Entire Group

This term signifies the collective entirety of a set of items, individuals, or entities being considered as a whole.

Account

A record summarizing all transactions related to a particular item or person in financial accounting.