ICAEW ARF · Chapter 8 · Question 11 of 12
Which of the following best describes analytical procedures?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Evaluations of financial information through analysis of plausible relationships among both financial and non-financial data
Explanation
Analytical procedures involve comparing figures and ratios with expectations, such as prior years, budgets or industry data, and investigating fluctuations that are unusual. Checking arithmetic is recalculation, third-party responses are external confirmations, and examining documents for authorisation is inspection.
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