Analytical procedurare conducted at the planning stage of an audit to enhance the understanding of the auditor's client.

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Analytical procedures are a useful tool for auditors to gain a better understanding of their client's business and financial operations. These procedures are typically performed during the planning stage of an audit to help the auditor identify areas of potential risk and to guide their subsequent audit work. By analyzing financial data and other relevant information, the auditor can better understand the client's business model, revenue streams, and key financial metrics, which can inform the scope and nature of the audit procedures to be performed.

Analytical Procedurare Conducted at the Planning Stage of an Audit