Which of the following analytical procedures most likely would be used during the planning stage of an audit?
A)Comparing current-year to prior-year sales volumes.
B)Reading the financial statements and notes and considering the adequacy of evidence.
C)Comparing the current-year ratio of aggregate salaries paid to the number of employees to the prior-year's ratio.
D)Reading the letter from the client's attorney and considering the threat of litigation.

Question

Quizplus · Accepted Answer

During the planning stage of an audit, auditors often use analytical procedures such as comparing current-year to prior-year sales volumes to identify areas of potential risk and to help in planning the audit approach.

Which of the Following Analytical Procedures Most Likely Would Be