Analytical procedures are used by the auditor:
A)only at the beginning of the audit
B)only as a substantive audit procedure during the audit
C)to focus his attention on accounts where procedures are inadequate
D)to focus his attention on accounts that have changed more than expected from the prior year

Question

Quizplus · Accepted Answer

Analytical procedures help the auditor identify accounts that have changed more than expected from the prior year, which may indicate potential errors or irregularities. Therefore, D is the correct answer. Option A is incorrect, as analytical procedures are used throughout the audit process, not just at the beginning. Option B is partly correct, as analytical procedures may be used as substantive audit procedures, but they serve other purposes as well. Option C is incorrect, as analytical procedures are not used to focus attention on inadequate procedures, but rather to identify potential issues in account balances.

Analytical Procedures Are Used by the Auditor