Final answer:
Analytical procedures are required during the planning and completion phases of an audit. They aid in understanding the client's business and potential risks during planning and ensure the consistency and reasonableness of information at completion.
Step-by-step explanation:
Analytical procedures are essential components of the auditing process and are utilized at various stages of an audit. For the question asking during which phases analytical procedures are required, the answer is B) planning and completion phases. During the planning phase, analytical procedures help in understanding the client's business and industry, as well as in the identification of areas of potential risk. On the other hand, at the completion stage, these procedures assist in the final review of the financial statements to ensure consistency and reasonableness of the information provided.
Analytical procedures play a significant role in providing an effective way to interpret, analyze, and evaluate financial information. They are thoroughly developed to support the analysis of financial data, ensuring accuracy, precision, and reliability. In terms of the auditing process, the use of analytical procedures in both the planning and completion phases aligns with best practices established by associations and federal agencies which post guidelines for proper conduct and analysis in auditing.