An auditor often uses analytical procedures
A)to identify internal controls that might be tested
B)to confirm that internal controls are in place and operating as intended
C)as evidence for whether the financial statement accounts are prepared in accordance with an applicable financial reporting framework
D)to compare the client's performance to an industry benchmark

Question

Quizplus · Accepted Answer

Analytical procedures are used by an auditor to evaluate financial information by analyzing relationships between different accounts or financial data. This helps the auditor to identify any unusual fluctuations or relationships that may require further investigation, and to assess whether the financial statements are presented fairly in accordance with the applicable financial reporting framework. Analytical procedures do not focus on identifying or testing internal controls, confirming control effectiveness, or comparing performance to industry benchmarks.

An Auditor Often Uses Analytical Procedures