Knowledge of the client's business combined with analytical procedures assists in identifying possible oversights in an audit.

Question

Quizplus · Accepted Answer

Analytical procedures are a key tool used in auditing to evaluate financial information and identify potential errors or misstatements. By combining this with knowledge of the client's business, auditors are better able to assess the risk of material misstatements and design effective audit procedures to provide reasonable assurance that the financial statements are free from material misstatement.

Knowledge of the Client's Business Combined with Analytical Procedures Assists