The primary objective of analytical procedures used near the end of an audit is to
A)Obtain evidence from details tested to corroborate management assertions.
B)Obtain evidence on the validity of the assessment of control risk.
C)Assist auditors in evaluating the overall financial statement presentation.
D)Identify areas that represent specific risks relevant to the audit.

Question

Quizplus · Accepted Answer

Analytical procedures used near the end of an audit are primarily used to assist auditors in evaluating the overall financial statement presentation. This is done through comparing financial information with expectations developed from auditors' knowledge of the entity's business and industry. The objective is to identify any potential material misstatements or inconsistencies with the financial statements. Analytical procedures do not provide evidence on specific details tested or the validity of control risk assessments, and they are not used to identify specific risks relevant to the audit.

The Primary Objective of Analytical Procedures Used near the End