Accounts payable schedule verification may include the use of analytical information.Which of the following is analytical information?

B.Comparing the balance on the schedule with the balances of prior years.

The Correct answer is  'B' - because it is by comparison of both present and previous years balances, we can come the analytical information. 

Accounts Payable schedule only has the ageing of the accounts payable, which lets you plan your cash flow, based on the credit terms with each vendor.

Examining vendors invoices in support of selected items on the schedule.

Comparing the schedule with the accounts payable ledger or unpaid voucher file. B.Comparing the balance on the schedule with the balances of prior years.

Well answered by @IMRAN ALI MOHAMMED &@georgei assi

Analytical procedures are useful in identifying1)unexpected differences,2)the absence of differences when they are expected,3)potential errors,4)potential fraud or illegal acts or5)other unusual or nonrecurring transactions or events.Thus,they may include comparison of current period information with budgets,forecasts,or similar information for prior periods.

 

its a relative term for external auditors do such an exercise based on time fee and other management scope

A.Comparing the schedule with the accounts payable ledger or unpaid voucher file. B.Comparing the balance on the schedule with the balances of prior years. C.Comparing confirmations received from selected creditors with the accounts payable ledger. D.Examining vendors invoices in support of selected items on the schedule.