The third stage of applying analytical procedures is to
A) identify absolute changes in amounts between the current year and the prior year.
B) use ratios and trends.
C) make an objective assessment regarding usability of analytical procedures.
D) document expected and unexpected changes.

Question

Quizplus · Accepted Answer

The third stage of applying analytical procedures is to use ratios and trends to identify any unusual fluctuations or patterns. This helps auditors to gain a better understanding of the client's financial statements and identify areas that require further investigation. Options A, C, and D are incorrect as they refer to other stages in applying analytical procedures.

The Third Stage of Applying Analytical Procedures Is to