When analytical procedures are used to obtain audit evidence during the risk response phase, _______.
A)they are referred to as "substantive analytical procedures."
B)they are referred to as tests of internal control
C)the audit report is ready to be issued
D)management should be allowed to select the procedures and tests

Question

Quizplus · Accepted Answer

Analytical procedures used for obtaining audit evidence during the risk response phase are commonly referred to as "substantive analytical procedures." These procedures involve the analysis of financial information to identify unusual fluctuations or trends that may indicate the presence of material misstatements in the financial statements. Substantive analytical procedures are often used in conjunction with other substantive audit procedures, such as tests of details, to provide sufficient audit evidence. Options B, C, and D are incorrect statements.

When Analytical Procedures Are Used to Obtain Audit Evidence During