To be effective, analytical procedures in the overall review stage of an audit engagement should be performed by:

Question

Quizplus · Accepted Answer

Choice "C" is correct. The manager and partner on a specific job generally bear a great deal of responsibility for the audit and the report. Typically, they would perform analytical procedures during the final review stage, to evaluate overall financial statement presentation and to assess the conclusions reached. In order to evaluate the results of the analysis and to perform an effective review, the manager or partner should have a comprehensive knowledge of the client's business and the industry. Choice "A" is incorrect. It is more effective to have a manager or partner perform this review rather than a staff accountant, because the manager or partner is generally more experienced and knowledgeable, and because it provides a double check on the work of the staff accountant. Choices "B" and "D" are incorrect. The managing partner and the quality control manager or partner might not have a comprehensive knowledge of the client's business and industry.

To Be Effective, Analytical Procedures in the Overall Review Stage