Analytical procedures issued in the planning stage of an audit, generally?
Correct answer: D. All of the aboveHire An Accountant
- A. helps to determine the nature, timing and extent of other audit procedures
- B. directs attention to potential risk areas
- C. indicates important aspects of business
- D. All of the aboveHire An Accountant
Explanation
Planning-stage analytical procedures help the auditor understand the business, highlight unusual or risky areas, and decide the nature, timing, and extent of further audit work. Thus, all three listed effects apply.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Auditing
Auditing examines accounting records and financial statements to determine whether they present a reliable and fairly stated position. The subject covers audit objectives, internal controls, audit evidence, materiality, vouching, verification, working papers, auditor independence, audit reports, and the distinction between an audit and accounting or investigation.
Practise Auditing
162 free Auditing MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Auditing questions
Which of the following statements is most closely associated with analytical procedure applied at substantive stage?
The basic assumption underlying the use of analytical procedures is:____________?
What are analytical procedures?
In determining the level of materiality for an audit, what should not be considered?
When issuing unqualified opinion, the auditor who evaluates the audit findings should be satisfied that the_____________?
Balance sheet does not include:_____________?