Following are the techniques of audit testing:
Inspection
Observation
Inquiry
Confirmation
Computation
Analytical review
If an Auditor studies significant ratios and compares financial information with prior periods and investigates unusual fluctuations, his technique of audit testing will fall into which of the above given techniques?
Answer:
yes neo You r right " It is Analytical Review"
Analytical Review
Compare amounts and ratios (e.g., effective tax rates) for the current period with the prior year. Investigate significant fluctuations. Test ratios and other calculations, as necessary.
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