Analytical procedures used in planning an audit should focus on identifying:
A)the predictability of financial data from individual transactions.
B)the various assertions that are embodied in the financial report.
C)areas that may represent specific risk relevant to the audit.
D)material weaknesses in internal control.

Question

Quizplus · Accepted Answer

Analytical procedures used in planning an audit should identify areas that may represent specific risk relevant to the audit. This helps the auditor to focus on the areas that are more likely to have material misstatements and design the audit procedures accordingly. While the predictability of financial data from individual transactions and the various assertions embodied in the financial report are important factors to consider during the audit, they are not the primary focus of analytical procedures used in planning the audit. Material weaknesses in internal control are also important to consider, but this is typically done later in the audit process during the evaluation of internal control.

Analytical Procedures Used in Planning an Audit Should Focus on Identifying