Analytical procedures conducted at the end of an audit are performed to examine trends and changes. What is typically another purpose of analytical procedures at the end of the audit?
A) To document planning in accordance with GAAS.
B) To provide the client with a value added service in conjunction with audit activities.
C) To ask "hard questions" about the company's results and its relationship to external factors.
D) To increase the amount of items reported in the management letter.

Question

Quizplus · Accepted Answer

Analytical procedures at the end of an audit not only examine trends and changes but also ask "hard questions" to determine if the company's results are reasonable and if there are any external factors that may have influenced the results. This helps the auditor form an opinion on the financial statements and identify any potential misstatements or fraud. Choices A, B, and D are incorrect because they do not accurately describe the purpose of analytical procedures at the end of an audit.

Analytical Procedures Conducted at the End of an Audit Are