The auditor performs analytical procedures to identify changes in the financial statements in the current year compared to the prior year that are
A)inconsistent with the expectations of management
B)inconsistent with other information known to the auditor
C)represent larger fluctuations than the auditor might expect
D)consistent with the prior year
E)inconsistent with the footnotes on subsequent events
F)both A and B
G)both B and C

Question

Quizplus · Accepted Answer

Analytical procedures aim to identify significant changes or fluctuations in financial statement items that are inconsistent with the auditor's expectations based on their understanding of the client's business and the industry in which they operate. Choices B and C accurately describe the purpose of these procedures.

The Auditor Performs Analytical Procedures to Identify Changes in the Financial