Analytical procedures used in planning an audit should focus on identifying
A) Material weaknesses in internal control.
B) The predictability of financial data from individual transactions.
C) The various assertions that are embodied in the financial statements.
D) Areas that may represent specific risks relevant to the audit.

Question

Quizplus · Accepted Answer

Analytical procedures used in planning an audit should focus on identifying areas that may represent specific risks relevant to the audit. This helps in determining the nature, timing, and extent of further audit procedures to be performed. While material weaknesses in internal control, the predictability of financial data from individual transactions, and various assertions that are embodied in the financial statements are also important considerations, they are not the primary focus of analytical procedures used in planning an audit.

Analytical Procedures Used in Planning an Audit Should Focus on Identifying