Performing analytical procedures during the planning process allows the auditor to
A)identify areas where client performance is inconsistent with its expectations
B)develop an audit program to gather evidence regarding internal controls for relevant assertions in significant accounts
C)schedule more time for substantive testing
D)schedule more time for testing of controls

Question

Quizplus · Accepted Answer

Performing analytical procedures during the planning process allows the auditor to identify areas where client performance is inconsistent with its expectations. This can help the auditor to identify areas of higher risk and adjust their audit plan accordingly. Option B is incorrect because developing an audit program for internal controls is typically done during the risk assessment stage, not specifically during analytical procedures. Options C and D are incorrect because performing analytical procedures does not necessarily directly impact the amount of time scheduled for substantive or control testing.

Performing Analytical Procedures During the Planning Process Allows the Auditor