Analytical procedurare conducted at the planning stage of the audit to:

Question

Quizplus · Accepted Answer

Analytical procedures are used during the planning stage of an audit to identify and assess the risk of material misstatement in financial statements, and to enhance the auditor's understanding of the client's business and industry. They can also help identify areas where further audit procedures may be required. Additionally, analytical procedures can be used during the audit to detect fraud, but this is not their primary purpose during the planning stage. Therefore, option D is the correct answer as it includes both (a) aiding in the identification of risk and (c) enhancing the understanding of a client.

Analytical Procedurare Conducted at the Planning Stage of the Audit