Final answer:
Analytical procedures during the completion stage of an audit are used to help the auditor identify significant matters that require special attention before finalizing the audit engagement, making option 'C' the correct answer.
Step-by-step explanation:
The audit question pertains to the role of analytical procedures performed during the completion stage of an audit. The correct answer to the question provided is 'C) help the auditor identify significant matters requiring special attention later in the engagement.' This is because at the completion stage, the purpose of analytical procedures is to assist the auditor in finalizing their opinion and ensuring that they have not overlooked any significant matters that could impact the financial statements. These procedures can help in identifying any discrepancies or unusual transactions that may require further investigation before finalizing the audit report.
Analytical procedures can indeed involve a deep analysis and evaluation of the financial data, looking at it from multiple perspectives and gathering information from various sources. They can involve comparing and contrasting financial data with industry benchmarks, analyzing trends over time, or checking for relationships that do not conform to expectations based on the auditor's understanding of the client's business.
Thus, the analytical procedures' role goes beyond just understanding the client's business (A) and typically need not be performed by a senior partner (B), although their expertise may be beneficial. The main focus is on identifying areas that may be of significant risk or that require additional scrutiny before the conclusion of the audit.