The primary purpose of performing analytical procedures in the planning phase of an audit is to:
A) help the auditor obtain an understanding of the client's industry and business.
B) assess the going concern assumption.
C) indicate possible misstatements.
D) reduce detailed tests.

Question

Quizplus · Accepted Answer

Analytical procedures in the planning phase help auditors understand the client's industry and business, which aids in identifying areas of potential risk and planning the audit approach.

The Primary Purpose of Performing Analytical Procedures in the Planning