Analytical procedures performed during substantive testing, such as those for the audit of inventories, are typically more focused and more extensive than those done as part of the audit planning.

Question

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Substantive testing involves more focused and extensive procedures as compared to the analytical procedures done during audit planning. This is because substantive procedures are carried out to obtain evidence about the completeness, accuracy, and validity of the financial statement balances or transactions, while analytical procedures performed during audit planning are more preliminary in nature and used for risk assessment purposes.

Analytical Procedures Performed During Substantive Testing, Such as Those for the Audit