Auditors perform analytical procedures in the planning stage of an audit for the purpose of
A) Deciding the matters to cover in an engagement letter.
B) Identifying unusual conditions that deserve more auditing effort.
C) Determining which of the financial statement assertions are the most important for the client's financial statements.
D) Determining the nature, timing, and extent of audit procedures for auditing the inventory.

Question

Quizplus · Accepted Answer

Analytical procedures in the planning stage are used to identify unusual conditions in the client's financial statements, which may require more auditing effort. This helps the auditor to allocate their resources effectively and efficiently. The other options are not direct objectives of analytical procedures in the planning stage.

Auditors Perform Analytical Procedures in the Planning Stage of an Audit