rect with respect

use of analytical
ned as substantive
33. Which of the following statements is not correct with
to analytical procedures? a. Auditing standards require the use of an
procedures. b. Analytical procedures may be performed as subst.
test. Analytical procedures may be performed as test of Analytical procedures use
comparisons and relatio
37. Confirmatic
accounts b. a. indivi
sales bank
fixed d. payro
test of control. and relationships
her account balances appear reasonable
34. Most auditors prefer to replace tests of details with anal
procedures whenever possible because 2. The analytical procedures are more reliable b. The
tests of details are more expensive
The analytical procedures are more persuasive d. The tests of details are more difficult to
interpret
You are a and servi not recor below we a. Vou
ven

(b.)
Tra
acc Со
Re
ас
35. An auditor compares this year's revenues and expenses with
those of the prior year and investigates all changes exceeding 10%. By this procedure
the auditor is most likely to learn that a. An increase in property tax rates has not been
recognized
in the client's accrual b. This year's provision for uncollectible account is!
inadequate because of worsening economic conditions c. December payroll
taxes were not paid
The client changed its capitalization policy for small tools during the year.
39. The pro
year by before during a. b.

d.
40. Which
a.

36. When performing planning analytical procedures for a client

the auditor detected that the gross profit percentage had declined by 50% from the
previous year to the year currently, under audit. The auditor should: al investigate the
possibility the client may have made
error in their cost of goods sold computation. assist management in
developing greater cost efficient in their product line. prepare a going
concern opinion for the client. advise the client to have extensive disclosure
to alle investor concerns.
d.
sure to alleviate
332