Emmanuela Zhang was explaining the importance of analytical procedures to her staff. She made two statements:
(i) Analytical procedures are conducted throughout an audit.
(ii) Analytical procedures are an efficient method for estimating account balances.
A) both (i) and (ii)
B) neither (i) nor (ii)
C) (i) only
D) (ii) only

Question

Quizplus · Accepted Answer

Both statements (i) and (ii) are correct. Statement (i) is true as analytical procedures should be performed throughout the audit to obtain relevant evidence and ultimately help the auditor form an opinion on the financial statements. Statement (ii) is also true as analytical procedures are an effective and efficient way to estimate account balances by using relationships among financial and non-financial data. Therefore, the best choice is A, both (i) and (ii).

Emmanuela Zhang Was Explaining the Importance of Analytical Procedures to Her