The auditor performs analytical procedures to
A)increase his understanding of the business
B)identify expected changes between his expectations for the current year and the prior year
C)identify areas where he believes the risk of material misstatement might not be present
D)satisfy the requirement of the auditing standards to use analytical procedures during the testing stage

Question

Quizplus · Accepted Answer

Analytical procedures are used by auditors to increase their understanding of the business and its environment, which helps in identifying areas of potential risk and planning the audit accordingly.

The Auditor Performs Analytical Procedures to