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 number of items reported in the management letter.

Question

Quizplus · Accepted Answer

While analyzing trends and changes is a common purpose of analytical procedures at the end of an audit, another important purpose is to ask "hard questions" about the company's results and its relationship to external factors. This helps the auditor to ensure that there are no underlying issues or abnormal fluctuations in the financial statements that may indicate financial misstatements or fraud. Conducting analytical procedures in this manner adds value to the audit and helps to increase the overall quality of the audit opinion.

Analytical Procedures Conducted at the End of an Audit Are