Generally accepted auditing standards require that analytical procedures should be applied ________.
A) in the planning and final review stages of the audit and as a substantive test during the audit
B) in the planning and final review stages of the audit, and can be used as a substantive test during the audit
C) in the planning stage, and can be applied as a substantive test and in the final review stage
D) in the final review stage, and can be applied as a substantive test in the planning stage

Question

Quizplus · Accepted Answer

Generally accepted auditing standards require that analytical procedures should be applied in the planning and final review stages, and can also be used as a substantive test during the audit. This helps auditors to understand the nature of the entity's business and identify areas where there may be a higher risk of material misstatement. Analytical procedures can also be useful in gathering evidence about account balances or transactions. Therefore, the best choice is B.

Generally Accepted Auditing Standards Require That Analytical Procedures Should Be