When the auditor is engaged at the risk assessment stage of the audit, analytical procedures are rarely used because these would represent substantive procedures.

Question

Quizplus · Accepted Answer

Analytical procedures can be used as part of the risk assessment procedures to obtain an understanding of the client's business and identify significant risks. However, they are typically performed at a higher level of disaggregation than substantive analytical procedures performed during the substantive testing phase.

When the Auditor Is Engaged at the Risk Assessment Stage