One purpose of performing preliminary analytical procedures in the planning phase of an audit is to help the auditor make a preliminary assessment of control risk.

Question

Quizplus · Accepted Answer

Preliminary analytical procedures are primarily used to understand the client's business and identify areas of potential risk, but they do not directly assess control risk. Control risk assessment is typically done through understanding and testing the client's internal controls.

One Purpose of Performing Preliminary Analytical Procedures in the Planning