AC4:Q51 Explanation
The application of planned analytical procedures is based on the expectation that relationships among data exist and continue in the absence of known conditions to the contrary
The application of planned analytical procedures is based on the expectation that relationships among data exist and continue in the absence of known conditions to the contrary
AC4:Q52 Explanation
Tracing purchases recorded in the purchase book to purchase invoices is not an analytical procedure, this is a substantive procedure used in audit testing to verify the completeness and accuracy of recorded transactions.
. Analytical procedures, on the other hand, involve the evaluation of financial information through analysis of plausible relationships and
Tracing purchases recorded in the purchase book to purchase invoices is not an analytical procedure, this is a substantive procedure used in audit testing to verify the completeness and accuracy of recorded transactions.
. Analytical procedures, on the other hand, involve the evaluation of financial information through analysis of plausible relationships and
AC4:Q54 Explanation
When addressing inherent risk (what can go wrong), we consider risk of material misstatement. When risk is high, tests of details are more appropriate than SAP (Substantive Analytical Procedures).
When addressing inherent risk (what can go wrong), we consider risk of material misstatement. When risk is high, tests of details are more appropriate than SAP (Substantive Analytical Procedures).
AC4:Q55 Explanation
In trend analysis, auditor compares current balances to prior period balances or trends, adjusting for relevant changes.
In trend analysis, auditor compares current balances to prior period balances or trends, adjusting for relevant changes.