Which of the following best explains why an analytical procedure might be used as a substantive test?

Which of the following best explains why an analytical procedure might be used as a substantive test? To achieve audit objectives in the most effective and efficient manner possible.

Which of the following is true about analytical procedures?

The correct answer is OPTION C i.e Analytical procedures are used for planning, but they should not be used to obtain evidence as to the reasonableness of specific account balances.

What are the substantive analytical procedures?

Substantive analytical procedures are used to obtain evidential matter about particular assertions related to account balances or classes of transactions. Final analytical procedures are used as an overall review of the financial information in the final review stage of the audit.

Which one of the following is the major purpose of performing analytical procedures in internal audits?

The purpose of applying analytical procedures in planning the audit is to assist in planning the nature, timing, and extent of auditing procedures that will be used to obtain evidential matter for specific account balances or classes of transactions.

Which of the following best describes the problem with the use of publish industry averages for analytical procedures?

Which of the following best describes the problem with the use of published industry averages for analytical procedures? Lack of comparability. Which of the following is not considered to be an analytical procedure? Comparisons of financial statement amounts with source documents.

What is the difference between analytical procedures and substantive procedures?

Substantive procedures are reviews of documents for a “substantial portion” of account activity, while analytical procedures include controls test and test relying on mathematical relationships reflectinb accounting mechanics, contractual provisions [debt times interest rate], or business capabilities [production per …

Is recalculation a substantive analytical procedure?

Recalculation Procedures for Audit Clients Recalculation procedures can be used as a test of control and a substantive test, and like reperformance, it results in audit evidence obtained directly by the auditor so it is considered to be highly reliable evidence.

Which is not an analytical procedure?

Tracing of purchases recurred in the purchase book to purchase invoices.

Which of the following types of audit evidence is the most persuasive?

Although the bank statements are in the possession of the client, they originated outside of the client and, relative to the other responses, they are the most persuasive. .

What are the types of analytical methods?

There are three basic types of analytical techniques:

• Regression Analysis.
• Grouping Methods.
• Multiple Equation Models.