The auditors use analytical procedures during the course of an audit.The most important phase of performing these procedures is the:
A)Vouching of all data supporting various ratios.
B)Investigation of significant variations and unusual relationships.
C)Comparison of client-computed statistics with industry data on a quarterly and full-year basis.
D)Recalculation of industry date.

Question

Quizplus · Accepted Answer

The investigation of significant variations and unusual relationships is the most important phase of performing analytical procedures, as it allows the auditors to identify potential misstatements or errors in the financial statements. Vouching of data, comparison with industry data, and recalculation are also important, but not as critical as identifying significant variations and unusual relationships.

The Auditors Use Analytical Procedures During the Course of an Audit.The