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Before They Can Complete an Audit, Auditors Need to Evaluate

question 28

Essay

Before they can complete an audit, auditors need to evaluate the causes of any unexpected fluctuations in a client's financial statements detected by the use of analytical procedures. Explain how auditors interpret the results of analytical procedures and why it is done.


Definitions:

American Dollars

The currency of the United States of America, widely used in international transactions and known as the USD.

European Banks

Financial institutions operating in Europe, subject to the region's regulatory frameworks, providing a range of banking and financial services.

American Firm

A company that is incorporated or has its principal operations in the United States of America.

Consolidated Books

Financial records that combine the assets, liabilities, and operating accounts of parent and subsidiary companies into one set of statements.

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