[IMGCAP(1)][IMGCAP(2)]Current techniques used by auditors and taught to accounting students to evaluate financial statement information involve audit sampling and performing analytical procedures such as financial ratio analysis and reasonable tests.

Audit sampling is selecting a group of items such as invoices for investigation to draw inferences about an account balance. Ratio analysis involves comparisons between two financial statement accounts such as current ratios and gross profit percentage. Reasonable tests involve using financial and nonfinancial data to estimate an account balance. An example would be multiplying items sold by price to determine expected revenue.

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