Analytical procedures used in planning an audit should focus on:

Question

Quizplus · Accepted Answer

Choice "C" is correct. Analytical procedures used in planning the audit should focus on enhancing the auditor's understanding of the client's business and the transactions and events that have occurred since the last audit date. Choice "A" is incorrect. Analytical procedures used in planning do not reduce tests of controls or substantive tests. Choice "B" is incorrect. Analytical procedures used in planning are not designed to identify material misstatements. Choice "D" is incorrect. Audit evidence has not yet been gathered during the planning process, so its adequacy cannot be assessed.

Analytical Procedures Used in Planning an Audit Should Focus On