Generally accepted auditing standards state that analytical procedures
A) Should be applied in the planning and final review stages of the audit and as a substantive test during the audit.
B) Should be applied in the planning and final review stages of the audit and can be used as a substantive test during the audit.
C) Should be applied in the planning stage and can be applied as a substantive test in the final review stage.
D) Should be applied in the final review stage and can be applied as a substantive test in the planning stage.

Question

Quizplus · Accepted Answer

Generally accepted auditing standards state that analytical procedures should be applied in the planning and final review stages of the audit and can be used as a substantive test during the audit. This means that auditors can use analytical procedures to gather evidence during the audit to support their assertions about the financial statements. Analytical procedures involve analyzing relationships between financial and nonfinancial data, such as comparing current-year financial results to prior-year results or to industry benchmarks. Using analytical procedures during the audit can help auditors identify potential problems or areas of concern, which can then be investigated further.

Generally Accepted Auditing Standards State That Analytical Procedures