Analytical procedures used in planning an audit should focus on:
A)reducing the scope of tests of controls and substantive tests.
B)providing assurance that potential material misstatements will be identified.
C)enhancing the auditor's understanding of the client's business.
D)assessing the adequacy of the available evidential matter.

Question

Quizplus · Accepted Answer

Analytical procedures in the planning phase of an audit are primarily aimed at enhancing the auditor's understanding of the client's business and its environment. This helps the auditor to identify areas of potential risk and to plan the audit more effectively.

Analytical Procedures Used in Planning an Audit Should Focus On