Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. why is it important for auditors to use analytical

Why is it important for auditors to use analytical comparisons such as the ratios in the...

80.2K

Verified Solution

Question

Accounting

Why is it important for auditors to use analyticalcomparisons such as the ratios in the Sunbeam case to evaluatepossible red flags that may indicate additional auditing isrequired? How does making such calculations enable auditors to meettheir ethical obligations

Answer & Explanation Solved by verified expert
4.3 Ratings (506 Votes)
Analytical procedures involve evaluations of financial statement information by a study of relationships between financial and nonfinancial date A basic premise using these procedures is that relationships among the data may exist Auditors can use these relationships to obtain evidence about the reasonableness of the financial statement amounts    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Why is it important for auditors to use analyticalcomparisons such as the ratios in the Sunbeam case to evaluatepossible red flags that may indicate additional auditing isrequired? How does making such calculations enable auditors to meettheir ethical obligations

Other questions asked by students

Q

In a list format, provide the pathway of a water molecule from absorption into the systemic...

Medical Sciences
Q

Revenues generated by a new fad product are forecast as follows: Year Revenues 1 $40,000 2...

Finance
Q

Let G be a group and let C={g?G|xg=gx for all x?G} be the center of G....

Advance Math
Q

Solve the compound inequality.7

Basic Math
Q

The mean waiting time at the drive through of a fast food restaurant from the...

Statistics
Q

A company's income statement showed the following: net income, $124,000; depreciation expense, $30,000; and gain...

Accounting
Q

Define Account..

Accounting
Q

A $980,000 bond issue on which there is an unamortized premium of $77,000 is redeemed...

Accounting
Q

On September 30, the bank statement of Fine Company showed a balance of $8,100. The...

Accounting
Q

1. Consideras que la deducciones aplicables a contribuyentes que son individuos dispuestas segn el Cdigo...

Accounting
Q

Financial statement analysis The financial statements of Zach Industries for the year ended December 31,...

Finance
Q

Tarih 5 Mays 2013. Vadesi 27 Temmuz 2024 olan %12 kuponlu devlet tahvilinin kotasyon fiyat...

Finance