Analytical procedures are conducted at the planning stage of the audit to:
A) aid in the identification of risk.
B) identify where fraud has occurred.
C) enhance the understanding of a client.
D) both a and c.

Question

Quizplus · Accepted Answer

Analytical procedures are used at the planning stage of the audit to aid in the identification of risk and to enhance the auditor's understanding of the client. By examining financial and non-financial information, the auditor can identify potential areas of risk and gain insight into the client's operations and financial performance. While analytical procedures can be used to detect potential fraud, this is not their primary purpose at the planning stage.

Analytical Procedures Are Conducted at the Planning Stage of the Audit