Many auditors perform extensive analytical procedures because
A) they are required by GAAS.
B) they pinpoint errors in accounts.
C) they indicate areas of potential risk and misstatement.
D) they are required for tests of controls.

Question

Quizplus · Accepted Answer

Analytical procedures are performed to help auditors assess the risk of material misstatement in financial statements. They involve evaluating financial information through analysis of plausible relationships and comparing it to expectations. By performing analytical procedures, auditors can identify areas where there may be potential risk or misstatement in the financial statements.

Many Auditors Perform Extensive Analytical Procedures Because