Final answer:
Preliminary analytical procedures in financial statement audits are performed at the beginning of the audit to evaluate financial statement numbers and ratios. They help auditors understand the client's business, identify areas of risk, and plan the audit. These procedures also provide a baseline for comparison with the final numbers and ratios at the end of the audit.
Step-by-step explanation:
The purpose of preliminary analytical procedures in financial statement audits is to evaluate the financial statement numbers and ratios at the beginning of the audit. These procedures help auditors gain an understanding of the client's business and industry, identify areas of potential risk, and plan the audit accordingly. The purpose of preliminary analytical procedures is to provide a baseline for comparison with the financial statement numbers and ratios at the completion of the audit, allowing auditors to assess any significant changes or discrepancies that may require further investigation.