When applying analytical procedures, an auditor could develop independent estimate of an account balance to compare it to___________?
Aclient’s unedited account balance adjusted for trends in the industry
BPrior year audited balance adjusted for trends in the industry
Cclient’s unedited account balance
DPrior year audited balance
Correct answer
B. Prior year audited balance adjusted for trends in the industry
Explanation
Prior year audited balance adjusted for trends in the industry is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.