The application of analytical procedurto the audit of inventoriis often:
A) not very useful.
B) the only procedure necessary.
C) a requirement of the standards.
D) used extensively.

Question

Quizplus · Accepted Answer

The application of analytical procedures to the audit of inventories is commonly used by auditors to support audit assertions, assist in identifying misstatements, and provide an overall understanding of the client's financial performance. While it may not be the only procedure necessary, it is often used extensively in the audit process. Additionally, analytical procedures are required by auditing standards to be performed during the planning and the overall review stages of the audit.

The Application of Analytical Procedurto the Audit of Inventoriis Often