If not already performed during the overall review stage of the audit, the auditor should perform analytical procedures relating to which of the following transaction cycles?
A)Payroll.
B)Revenue.
C)Purchasing.
D)Inventory.

Question

Quizplus · Accepted Answer

Analytical procedures are most commonly used in the revenue cycle, as it involves the largest amount of transactions and therefore provides a good basis for comparison and trend analysis. While analytical procedures may be relevant in other transaction cycles, the revenue cycle is typically the most important for these types of procedures.

If Not Already Performed During the Overall Review Stage of the Audit