- 1 Marks
AA – L2 – SA – Q3.10 – Analytical Procedures Benchmarks
Question
Which of the following would you not use as a benchmark for comparison undertaking analytical procedures?
A Other audit clients
B Previous years
C Other companies in the same industry
D Budget
Answer
A
Explanation:
Analytical procedures use benchmarks like prior years (B), industry data (C), and budgets (D) to assess financial statement reasonableness. Other audit clients (A) are not used due to confidentiality and relevance issues. Thus, A is correct.
- Tags: Analytical Procedures, Benchmarks, ICAG, Industry Comparison
- Level: Level 2
- Topic: Audit and Assurance Evidence
- Uploader: Salamat Hamid