Question

Substantive analytical procedures performed during the testing phase of the audit

A) are required under generally accepted auditing standards.
B) are always done independently from other audit procedures.
C) are used as a substantive test in support of account balances.
D) do not need to be documented in the working papers.

Answer 1

Substantive analytical procedures are used as a substantive test in support of account balances, are required under generally accepted auditing standards, and are documented in the working papers. The correct options are A, C and D.

Step-by-step explanation:

Substantive analytical procedures performed during the testing phase of the audit are used as a substantive test in support of account balances. This means that they provide evidence about the fairness and accuracy of the amounts recorded in the financial statements.

These procedures are required under generally accepted auditing standards (option A) and are part of the overall audit process. They are performed to obtain reasonable assurance that the financial statements are free from material misstatement.

In addition, these procedures are usually documented in the working papers (contrary to option D), which serve as evidence of the work performed by the auditors.

Hence, Options A, C and D are correct.