Analytical procedures in the overall review should be:
A) applied to every item on the financial statements.
B) performed by the partner or manager on the engagement.
C) based on financial statement data before all audit adjustments and reclassifications have been recognized.
D) performed only when material misstatement is expected.
E) performed only when unusual or unexpected balances and relationships are anticipated.

Question

Quizplus · Accepted Answer

Analytical procedures in the overall review stage of an audit are typically performed by the partner or manager on the engagement. This is because they have the experience and overview necessary to understand the broader implications of the financial data and to identify areas that may require further investigation.

Analytical Procedures in the Overall Review Should Be