Analytical procedures are used in the overall review for all of these reasons except:
A) to corroborate conclusions formed during the audit.
B) to assist in arriving at the overall conclusion that the financial information is consistent with the knowledge of the business.
C) to identify contingent liabilities.
D) to gain assurance that the company will remain a going concern.

Question

Quizplus · Accepted Answer

Analytical procedures are primarily used to understand financial information and identify any unusual transactions or patterns that might indicate potential issues. They are not specifically designed to identify contingent liabilities, which are potential liabilities that may occur depending on the outcome of a future event. Identifying contingent liabilities typically involves reviewing contracts, legal agreements, and other documents, rather than performing analytical procedures.

Analytical Procedures Are Used in the Overall Review for All