CISA Information System Auditing Process Practice Question
An IS auditor is using analytical procedures during the planning phase. Which of the following is an example of an analytical procedure?
⚠ Common exam trap
CISA often tests whether candidates can distinguish analytical procedures (analysis of relationships/trends) from other evidence-gathering techniques like observation, inspection, and confirmation — the trap is picking a procedure that gathers direct evidence instead of one that analyzes financial relationships.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Comparing current-year expenses to prior-year expenses
Analytical procedures involve evaluating financial information by analyzing plausible relationships among data — comparing current-year expenses to prior-year expenses is a textbook example of such a comparison. It helps the auditor identify unusual fluctuations or trends that warrant further investigation during planning. This is distinct from tests of details and substantive procedures that involve direct evidence gathering.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Comparing current-year expenses to prior-year expenses
Why this is correct
Analytical procedures evaluate financial information through plausible relationships among data. Comparing current-year expenses against prior-year figures is a substantive analytical comparison that highlights unexpected fluctuations or trends, unlike inquiry, observation or inspection, which are tests of controls or detail.
- ✗
Observing the inventory count
Why it's wrong here
Observing the inventory count is a physical inspection procedure that gathers direct evidence about existence, not an analytical comparison of data relationships. Analytical procedures would instead compare recorded quantities with expected levels derived from prior periods or production statistics.
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Inspecting authorization forms for signatures
Why it's wrong here
Inspecting signatures is a test of control, examining documentary evidence rather than comparing relationships or ratios across data. Analytical procedures evaluate plausible relationships among financial and operational information, such as comparing current-period balances with prior periods or budgeted expectations.
- ✗
Confirming account balances with third parties
Why it's wrong here
Confirming balances with third parties is a substantive test of detail, gathering direct external evidence, not an analytical procedure. Analytical procedures evaluate financial information through plausible relationships, such as ratio or trend comparisons; confirmation would be the right choice when corroborating a specific recorded balance.
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Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official ISACA exam blueprint
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