The auditor performs analytical procedures to
A)increase his understanding of the accounting system
B)identify expected changes between his expectations for the current year and the prior year
C)identify areas where he believes the risk of material misstatement might be present
D)satisfy the requirement of the auditing standards to use analytical procedures during the testing stage

Question

Quizplus · Accepted Answer

Analytical procedures are used by auditors to identify areas where there might be a risk of material misstatement, allowing them to focus their efforts on areas that may require more detailed investigation.

The Auditor Performs Analytical Procedures to