Question: Which statement is least appropriate? Analytical review involves looking at two or more sets of comparable information, say two years balance sheets, and extracting new

Which statement is least appropriate?

Analytical review involves looking at two or more sets of comparable information, say two years’ balance sheets, and extracting new data that can be used to direct audit attention towards areas of particular interest. One would be looking for:

a. Changes in key ratios.

b. Absolute changes in key figures.

c. General trends.

d. Findings from previous audits.

e. Movement in the level of purchases and creditors.

f. Movement in the cash and bank account balances.

g. Movement in sales and debtors.

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