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Analytical procedures are

A. Never required.
B. Required for planning, substantive testing, and overall review of the financial statements.
C. Required for planning and overall review of the financial statements.
D. Required during planning only.

1 Answer

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Answer:

Required for planning, substantive testing, and overall review of financial statements.

Step-by-step explanation:

Analytical procedures can be defined as procedures that are used by auditors to comprehend the various operations of a business and also to identify the risks areas that needs to be tackled.

Auditors utilize analytical procedures for the following reasons:

1) To help design the nature, timeframe and volume of other analytical procedures.

2) As a form of substantive test to obtain proof about a particular statement which is linked to account balances.

3) As a total review of of the financial information included in the final review part of the audit.

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