One reason why the independent auditors perform analytical procedures on the client's operations is to identify:
A)Weaknesses of a material nature in internal control.
B)Noncompliance with prescribed control procedures.
C)Improper separation of accounting and other financial duties.
D)Unusual transactions.

Question

Quizplus · Accepted Answer

Analytical procedures are used by auditors to identify unusual transactions or events that may indicate potential risks or fraud. These procedures involve comparing financial information across different periods or with industry averages to identify any significant changes or deviations. Therefore, identifying unusual transactions is an important objective of performing analytical procedures. Choices A, B, and C are related to internal controls, which may also be assessed through analytical procedures but are not the primary objective.

One Reason Why the Independent Auditors Perform Analytical Procedures on the Client's