During audit planning, the auditor uses analytical procedures primarily to:
A) identify weaknesses in internal control.
B) determine if the company's financial statements appear reasonable and are free of material misstatement.
C) determine the correspondence of the company's financial statements to the valuation and accuracy audit objectives.
D) understand the client's business and industry and to indicate possible misstatements.

Question

Quizplus · Accepted Answer

Analytical procedures during audit planning are used to gain an understanding of the client's business and industry, and to identify areas that may require further investigation due to potential misstatements.

During Audit Planning, the Auditor Uses Analytical Procedures Primarily To