Which of the following is not an analytical procedure a

Question

11.Which of the following statements is not correct about materiality? a) Materiality is a relative concept b) Materiality judgments involve both quantitative and qualitative judgments c) Auditor's consideration of materiality is influenced by the auditor's perception of the needs of an informed decision maker who will rely on the financial statements d) At the planning state, the auditor considers materiality at the financial statement level only
12......the audit risk,..... the materiality and ......the audit effort a) Lower, Higher, Lower b) Lower, Lower, Higher c) Higher, Lower, Lower d) Lower, Higher, Higher
13.When issuing unqualified opinion, the auditor who evaluates the audit findings should be satisfied that the a) Amount of known misstatement is documented in working papers b) Estimates of the total likely misstatement is less than materiality level c) Estimate of the total likely misstatement is more than materially level d) Estimates of the total likely misstatement cannot be made
14. In determining the level of materiality for an audit, what should not be considered? a) Prior year's errors b) The auditor's remuneration c) Adjusted interim financial statements d) Prior year's financial statements
15. Analytical procedures issued in the planning stage of an audit, generally a) helps to determine the nature, timing and extent of other audit procedures b) directs attention to potential risk areas c) indicates important aspects of business d) All of the above
16.Which of the following statements is most closely associated with analytical procedure applied at substantive stage? a) It helps to study relationship among balance sheet accounts b) It helps to discover material misstatements in the financial statements c) It helps to identify possible oversights d) It helps to accumulate evidence supporting the validity of a specific account balance
MCQ'S QUESTION BANK IN AUDITING/B14________________________5 
MASTER MINDS - QUALITY EDUCATION BEYOND YOUR IMAGINATION
17.For all audits of financial statements made in accordance with AAS­14, the use of analytical procedures is at the discretion of the auditor in which stage? a) Substantive testing b) Planning stage c) Overall review stage d) All of the above
18.The basic assumption underlying the use of analytical procedures is : a) It helps the auditor to study relationship among elements of financial information b) Relationship among data exist and continue in the absence of known condition to the contrary c) Analytical procedures will not be able to detect unusual relationships d) None of the above.
19.What are analytical procedures? a) Substantive tests designed to assess control risk b) Substantive tests designed to evaluate the validity of management's representation letter c) Substantive tests designed to study relationships between financial and non­financial d) All of the above
20.Which of the following is not an analytical procedure? a) Tracing of purchases recurred in the purchase book to purchase invoices. b) Comparing aggregate wages paid to number of employees c) Comparing the actual costs with standard costs d) All of them are analytical procedure