Final answer:
Analytical procedures are an important part of the audit process in accounting, involving evaluating financial information to assess reasonableness and identify risks. Contrary to option A, they can be performed during both the planning and detailed testing phases. Option D is incorrect as analytical procedures can be applied to the entire sales and collection cycle.
Step-by-step explanation:
Analytical procedures are an important part of the audit process in accounting. They involve evaluating financial information to assess the reasonableness of the amounts recorded, and to identify any potential risks or anomalies. Contrary to option A, analytical procedures are not only done during the planning phase of the audit, but can also be performed during the detailed testing phase.
Option B is incorrect because analytical procedures can be performed both before and after the tests of details of balances. These procedures help auditors gain a comprehensive understanding of the financial statements and identify any discrepancies that may need further investigation.
Option C is also incorrect because analytical procedures can be performed both before and after the balance sheet date. The objective is to assess the overall financial health of the company and detect any inconsistencies or unusual trends.
Lastly, option D is incorrect. While analytical procedures can be used to assess the accounts receivable balance, they are not limited to that specific account. They can be applied to the entire sales and collection cycle to gain a thorough understanding of the underlying transactions and identify any potential issues.