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      Question

      Which of the following best describes analytical

      procedures as per SA 520?
      A Testing of internal controls Correct Answer Incorrect Answer
      B Physical verification of assets Correct Answer Incorrect Answer
      C Evaluation of financial information by studying plausible relationships among data Correct Answer Incorrect Answer
      D Obtaining confirmations from third parties Correct Answer Incorrect Answer
      E Checking arithmetical accuracy of vouchers Correct Answer Incorrect Answer

      Solution

      Analytical procedures involve analysis of ratios, trends, variances, and other logical relationships to identify unusual items.

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