Asked by Melissa Brown on May 08, 2024
Verified
Analytical review procedures include all of the following except
A) simple ratio and trend analysis.
B) complex statistical techniques.
C) general reasonableness tests.
D) comparison of the company's reported financial results to benchmarks established by the SEC.
Analytical Review Procedures
Financial analysis techniques used in auditing to assess the reasonableness of account balances and fluctuations.
SEC
The U.S. Securities and Exchange Commission, a government agency responsible for enforcing federal securities laws and regulating the securities industry, stock and options exchanges.
- Comprehend the application of analytic review procedures in evaluating financial information.
Verified Answer
JH
Jassim HamdanMay 15, 2024
Final Answer :
D
Explanation :
Analytical review procedures may include simple ratio and trend analysis, complex statistical techniques and general reasonableness tests. However, comparison of the company's reported financial results to benchmarks established by the SEC is not considered an analytical review procedure, as it is a separate regulatory requirement.
Learning Objectives
- Comprehend the application of analytic review procedures in evaluating financial information.