Question

Substantive analytical procedures are most, likely to be used to test which of the following accounts?

(1) Interest income
(2) Cash
(3) Accounts payable
(4) Treasury stock

Answer 1

Substantive analytical procedures are most likely to be used to test accounts payable.

Step-by-step explanation:

Substantive analytical procedures are most likely to be used to test (3) Accounts payable. These procedures involve evaluating the financial information of a company to identify any material misstatements or irregularities. In the case of accounts payable, substantive analytical procedures could include comparing the recorded balances to previous periods, analyzing trends, and assessing the reasonableness of the balances.