Analytical procedures are used in an audit because it is assumed of financial statements that

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Analytical procedures are used in an audit because it is assumed that plausible relationships among data may reasonably be expected to exist and continue. By analyzing these relationships, auditors can identify any potential misstatements or anomalies in the financial statements. However, this does not necessarily mean that management fraud can be discovered using only analytical procedures, as fraud may require further investigation and substantive testing. Analytical procedures are also not used as tests of controls, which are separate from substantive procedures such as analytical procedures.

Analytical Procedures Are Used in an Audit Because It Is