Analytical procedures used in the overall review stage of an audit generally include:
A) testing transactions to corroborate management's financial report assertions.
B) considering unusual or unexpected amount balances that were not previously identified.
C) retesting control procedures that appeared to be ineffective during the assessment of control risk.
D) gathering evidence concerning account balances that have not changed from the prior year.

Question

Quizplus · Accepted Answer

Analytical procedures in the overall review stage involve reviewing financial statement amounts and disclosures to identify unusual or unexpected balances that were not previously identified during substantive testing. This step is important to ensure that the financial statements are materially correct and free from misstatements. The other options listed do not accurately describe analytical procedures in the overall review stage.

Analytical Procedures Used in the Overall Review Stage of an Audit