To be effective,analytical procedures performed near the end of the audit should be performed by
A)The partner performing the quality review of the audit.
B)A beginning staff accountant who has had no other work related to the engagement.
C)A manager or partner who has a comprehensive knowledge of the client's business and industry.
D)The CPA firm's quality control manager.

Question

Quizplus · Accepted Answer

Analytical procedures performed near the end of the audit require a comprehensive knowledge of the client's business and industry, which is typically possessed by a manager or partner. This individual will have a better understanding of the materiality of variances and will be better able to evaluate the reasonableness of the results. A beginning staff accountant and the CPA firm's quality control manager may not have the necessary experience and expertise to perform these procedures effectively. The partner performing the quality review of the audit may have the expertise, but their involvement in the engagement should be limited to reviewing and approving the work performed by others.

To Be Effective,analytical Procedures Performed near the End of the Audit