Final answer:
The statement is true; substantive analytical procedures are used throughout all phases of an audit to evaluate financial information and identify areas where misstatements are more likely to occur.
Step-by-step explanation:
The statement 'Substantive analytical procedures performed in all phases of the audit generally use aggregate data to help understand where misstatements are more likely to occur' is True. Analytical procedures involve the evaluation of financial information by studying plausible relationships among both financial and non-financial data. They are typically used at various stages of an audit, including the planning phase to identify areas of potential risk, the testing phase to assess the validity of certain amounts, and the completion phase to provide overall assurance that financial statements are free of material misstatement.
Auditors apply these procedures using aggregate data as it helps in the identification of trends, patterns, and anomalies that might indicate risks of material misstatement due to error or fraud. Therefore, analytical procedures are a vital tool for auditors in assessing the likelihood of misstatements in an entity's financial records.