When auditors perform analytical procedures during the risk assessment for purchases and payables, they should _______.
A)develop a skill in analyzing the likely assertions that might be misstated based on the data
B)develop a skill in analyzing the likely assertions that might be correctly stated based on the data
C)specifically request the help of the internal auditors
D)report any misstatements immediately to the SEC

Question

Quizplus · Accepted Answer

Analytical procedures during risk assessment for purchases and payables should focus on identifying likely assertions that might be misstated based on the data. This helps auditors identify potential areas of risk and adjust their audit procedures accordingly. Option B is incorrect as auditors should focus on identifying areas of potential misstatement, not correctness. Option C and D do not make sense in this context.

When Auditors Perform Analytical Procedures During the Risk Assessment for Purchases