Which of the following is a substantive analytical procedure? 1. Foot the accounts payable trial balance and compare...

70.2K

Verified Solution

Question

Accounting

Which of the followingis a substantive analytical procedure?
1. Foot the accountspayable trial balance and compare with the general ledger.
2. Confirm accountspayable balances directly with vendors.
3. Multiply thecommission rate by total sales and compare the results withcommission expense.
4. Compute inventoryturnover for each major product line and compare with industrystandards.
Group of answer choices
All of the above are substantive analytical procedures
Item 4 only
Items 3 and 4
Item 3 only
Items 1, 3, and 4

Answer & Explanation Solved by verified expert

3.6 Ratings (560 Votes)

The answer is Items 3 and 4 Here is the explanation Analytical procedures are done to find out some audit evidence by comparing financial data with non financial data In substantive analytical procedures the auditor gets the evidence about account balances or class of transactions The option 1 Foot the 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: Flex AI - Your personal assistant for all your inquiries!

Become a Member