Which of the following is true about analytical procedures?
A)Performing analytical procedures results in the most reliable form of evidence.
B)Analytical procedures are tests of controls used to evaluate the quality of a client's internal control.
C)Analytical procedures are used for planning,but they should not be used to obtain evidence as to the reasonableness of specific account balances.
D)Analytical procedures are used in risk assessment,as a substantive procedure for specific accounts,and near the completion of the audit of the audited financial statements.

Question

Quizplus · Accepted Answer

Analytical procedures are used in risk assessment to identify areas with a higher risk of material misstatement, as a substantive procedure to gather evidence about specific accounts or assertions, and near the completion of the audit to provide overall reasonableness of the financial statements. They should not be used as the sole source of evidence, but rather in conjunction with other audit procedures.

Which of the Following Is True About Analytical Procedures