Which of the following is the first step an auditor performs when performing analytical procedures?
A) Determine appropriate procedures for investigating the reasons for differences if they are significant
B) Draw conclusions
C) Identify the computation, comparison or relationship to be made or investigated
D) Assess the reliability of any data to be used

Question

Quizplus · Accepted Answer

The first step in performing analytical procedures is to identify the computation, comparison, or relationship to be made or investigated. This involves determining which data will be analyzed and how it will be analyzed in order to identify potential issues or anomalies. Once this step is completed, the auditor can move on to assessing the reliability of any data to be used, determining appropriate procedures for investigating significant differences, and drawing conclusions based on the analysis.

Which of the Following Is the First Step an Auditor