AUD 4 Flashcards
Who performs analytical procedures in the overall review stage of an audit?
The partner who has a comprehensive knowledge of the industry.
If analytical procedures in the overall review stage suggest unexplained relationship, the auditor should?
The auditor would perform additional tests of detail of the accounts involved.
What is the purpose of anyaltical procedures used in the overall review stage?
The purpose is to evaluate the overall financial statement presentation, to assess the conclusions reached, and to assist in forming an opinion on whether the financial statements are without material misstatement.
Analysis of repairs and maintenance expense provides assurance about?
In regards to management’s assertion that expenditures for property and equipment have been capitalized and not charged to expense.
Analytical procedures are required by GAAS when?
ONLY in the review stage.
What are analytical procedures?
They are evaluations of financial information made by a study of relationships among data - including comparisons between current and historical information.
Current ratio?
Current assets / current liabilities
