Which of the following would you not use as a benchmark for comparison when undertaking analytical procedures?
Correct answer: A. Other audit clients
- A. Other audit clients
- B. Previous years
- C. Other companies in the same industry
- D. Budget
Explanation
Analytical procedures commonly compare results with prior years, budgets and industry information. Other audit clients are not normally used as a benchmark because their information is confidential and may not be comparable.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Auditing
Auditing examines accounting records and financial statements to determine whether they present a reliable and fairly stated position. The subject covers audit objectives, internal controls, audit evidence, materiality, vouching, verification, working papers, auditor independence, audit reports, and the distinction between an audit and accounting or investigation.
Practise Auditing
162 free Auditing MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Auditing questions
An auditor should not accept a loan on favourable commercial terms from an audit client because of the threat to his or her independence. The threat would be a___________?
Which of the following are fundamental ethical principles for professional accountants? 1 Competence 2 Compliance 3 Integrity 4 Objectivity
Which one of the following may auditors NOT perform for their client?
What is meant by the expression 'expectation gap'?
Which of the following does NOT belong in the auditors' report?
Which one of the following is part of the auditor's function?