In the planning stage, analytical procedures are used to:
A)identify potential problem areas.
B)provide direct evidence about the balances in accounts.
C)determine the mathematical correctness of the financial statements.
D)perform all of these.

Question

Quizplus · Accepted Answer

Analytical procedures are used in the planning stage to identify potential problem areas and to gain an understanding of the client's business and industry. They are not used to provide direct evidence or determine mathematical correctness of the financial statements.

In the Planning Stage, Analytical Procedures Are Used To