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AUD Prep

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Question:

Define 'Analytical Procedures'.

Author: Monique Tyler



Answer:

(AU-C 520.04): “Evaluations of financial information through analysis of plausible relationships among both financial and nonfinancial data. **Analytical procedures also encompass such investigation, as is necessary, of identified fluctuations or relationships that are inconsistent with other relevant information or that differ from expected values by a significant amount.” Accordingly, analytical procedures would be useful in identifying unusual year-end transactions.


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