Analytical procedures performed near the end of an audit generally include
A)considering unusual or unexpected account balances that were not previously identified.
B)performing tests of transactions to corroborate management's financial statement assertions.
C)gathering evidence concerning account balances that have not changed from the prior year.
D)retesting control activities that appeared to be ineffective during the assessment of control risk.

Question

Quizplus · Accepted Answer

Analytical procedures performed near the end of an audit involve reviewing the financial statements to identify any unusual or unexpected account balances that were not identified earlier in the audit process. This helps to ensure that all significant risks have been addressed and that the financial statements are fairly presented. Option B is incorrect as tests of transactions are generally performed earlier in the audit process to provide evidence for financial statement assertions. Option C is incorrect as gathering evidence concerning account balances that have not changed from the prior year does not provide new information relevant to the current year's financial statements. Option D is incorrect as retesting control activities only applies if control risk was assessed as high earlier in the audit process.

Analytical Procedures Performed near the End of an Audit Generally