When analytical procedures are used as substantive tests, some account relationships are more predictable than others. For

Question:

When analytical procedures are used as substantive tests, some account relationships are more predictable than others. For which of the following accounts is the prior-year balance likely to be the best predictor of the current year balance?

a. Accounts payable.

c. Cash.

b. Revenues.

d. Inventory.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Auditing An Assertions Approach

ISBN: 9780471134213

7th Edition

Authors: G. William Glezen, Donald H. Taylor

See More Books

Question Posted: May 08, 2024 01:31 AM

See More Questions

1- If an analytical procedure supports management representations, it provides Select answer from the options below persuasive evidence. minimal evidence. corroborative evidence. key item evidence....
14. In testing the existence assertion, an auditor ordinarily works from the a. Financial statements to the accounting records. b. General journal to the general ledger. c. Supporting evidence to the...
MULTIPLE-CHOICE QUESTIONS 1. Which of the following statements is false regarding preliminary analytical procedures in the revenue cycle? a. Since revenue is typically regarded as a high-risk...
You believe that oil prices will be rising more than expected, and that rising prices will result in lower earnings for industrial companies that use a lot of petroleum-related products in their...
(a) Explain why qn is the unique monic polynomial that satisfies (5.43). (b) Use this characterization to directly construct qs(t)
Distinguish among (a) Gross profits (b) Operating profits (c) Net profits.
Provide one example of a question addressed by each of the three environmentally differentiated conventional accounting systems. What distinguishes each of these examples from the questions addressed...
Find the frequency of small oscillations for a thin homogeneous plate if the motion takes place in the plane of the plate and if the plate has the shape of an equilateral triangle and is suspended...
Explain the overview of chemical hazard, causes of chemical hazard, effects of chemical hazard and how to mitigate the chemical hazard at Subang Jaya Airport
For audits of financial statements made in accordance with generally accepted auditing standards, the use of analytical procedures is required to some extent As a substantive test a. Yes b. Yes c. No...
An auditor audits an accounting estimate by any of the following means except a. Testing the process used by management to develop the estimate. b. Obtaining a confirmation from an independent...
The most common type of mirage is an illusion that light from faraway objects is reflected by a pool of water that is not really there. Mirages are generally observed in deserts, when there is a hot...
DO THE ACCOUNTING CYCLE: 1 journal entries, t account 2 financial statements (balance sheet, income statement, owners equity) 3 working paper (Journal entries with explanation, t accounts, trial...
Your company uses Azure Virtual Desktop ( AVD ) . You create an Azure storage account named storage 1 . You plan to use an FSLogix container to manage user profiles. You need to select data storage...
Consider the following ambiguous grammar S = B | C BaB|Bb | DC:=bC | Ca | DD= x Which of the following strings can NOT be generated by the grammar? aaaaax X xbbb bbbx axbaa bbbxaaaa None of the above...
Cash Marketable securities Accounts receivable Inventory enter the correct value for all placeholders (0 decimal places) 20xx 1% $ S $ $ Total Current Assets $ Net plant and equipment S Total Assets...
In what ways you can develop procedures for emergency extraction of a protectee from a dangerous location or situation. When it comes to the protection agency what is the mission and how can they use...
The pump of a water distribution system is powered by a 15-kW electric motor whose efficiency is 90 percent. The water flow rate through the pump is 50 L/s. The diameters of the inlet and outlet...
A business had revenues of $280,000 and operating expenses of $315,000. Did the business (a) Incur a net loss (b) Realize net income?
An 90000 loan is amortized by payments of $1850 at the end of every 6 months at a rate of 2% compounded monthly 1. Construct a partial amortization schedule showing the last 2 payments 2. determine...
Kelso's has a return on equity of 15.2 percent, a debt-equity ratio of 44 percent, a capital intensity ratio of 1.08, a current ratio of 1.25, and current assets of $138,000. What is the profit...
The following condensed information was reported by Peabody Toys, Incorporated, for 2024 and 2023: Income statement information Net sales Net income Balance sheet information Current assets Property,...

When analytical procedures are used as substantive tests, some account relationships are more predictable than others. For

Question:

Step by Step Answer:

The account for which the prioryear balance is likely to be the best predictor of the current year b...View the full answer

Auditing An Assertions Approach

Students also viewed these Business questions