The primary objective of analytical procedures used near the end of an audit is to:
A)Obtain evidence from details tested to corroborate particular assertions.
B)Identify areas that represent specific risks relevant to the audit.
C)Assist the auditor when forming overall conclusions about the financial statements.
D)Satisfy doubts when questions arise about a client's ability to continue in existence.

Question

Quizplus · Accepted Answer

The primary objective of analytical procedures used near the end of an audit is to assist the auditor when forming overall conclusions about the financial statements. These procedures involve analyzing relationships among financial and non-financial data to identify areas that may represent specific risks relevant to the audit and may also help to identify potential misstatements in the financial statements. However, their primary objective is to provide additional evidence to the auditor in forming their overall conclusion.

The Primary Objective of Analytical Procedures Used near the End