- 1 Marks
Question
The computation of ratios and trends and the use of statistical formula to obtain audit evidence is:
- A. Hot review
- B. Audit sampling
- C. Substantive test
- D. Analytical review
- E. Audit review
Answer
D
Explanation: The answer is D. Analytical review. Analytical review involves evaluating financial information by examining ratios, trends, and statistical relationships to identify unusual fluctuations or variances, which provides auditors with evidence about the financial statements.
- Topic: Audit Reporting
- Series: NOV 2011
- Uploader: Dotse