Analytical procedures
A)performed during the audit planning phase generally use aggregate data.
B)are never performed during the testing phase of an audit.
C)are declining in importance as a type of audit evidence.
D)performed during the audit planning stage help the auditor take a final objective look at the audited financial statements.

Question

Quizplus · Accepted Answer

Analytical procedures are often used during the audit planning phase to gain an understanding of the client's business and identify key areas of risk. These procedures typically involve analyzing aggregate data such as financial ratios and trends.

Option B is incorrect because analytical procedures can be performed during the testing phase to obtain additional audit evidence.

Option C is incorrect because analytical procedures remain an important type of audit evidence, particularly in areas such as revenue recognition and expense accruals.

Option D is incorrect because analytical procedures are generally performed throughout the audit, not just during the planning stage.

Analytical Procedures