Question

Analytical procedures:

A) are only done during the planning of the audit and when performing detailed tests.
B) performed during the detailed testing phase are done before tests of details of balances.
C) performed during the detailed testing phase are done before the balance sheet date.
D) are performed only on accounts receivable, not on the entire sales and collection cycle.

Answer 1

Analytical procedures are a key component of the audit process, helping auditors understand the client's business and evaluate financial statement amounts.

Step-by-step explanation:

Analytical procedures are a key component of the audit process in accounting. They are performed during the planning stage and also during the detailed testing phase.

During planning, these procedures help auditors understand the client's business, identify risks, and develop an appropriate audit strategy.

During the detailed testing phase, analytical procedures are used to evaluate the reasonableness of financial statement amounts and detect any potential misstatements or inconsistencies.