Question

Analytical procedures used in the overall review stage of an audit generally include:___________

a. Retesting control activities that appeared to be ineffective during the assessment of control risk.
b. Considering unusual or unexpected account balances that were not previously identified.
c. Performing tests of transactions to corroborate management's financial statement assertions.
d. Gathering evidence concerning account balances that have not changed from the prior year.

Answer 1

B.

Step-by-step explanation:

Analytical Procedures are those procedures that are used to analyze the financial information by assessing the relations likely shared between financial and non-financial data. It is an important part of an audit.

The analytical procedures are used for three chief purposes:

• Preliminary analytical review
• Substantive analytical procedures
• Final analytical review

The analytical procedures are used by an auditor in the final analytical review or overall review stage to evaluate the final financial statement to check whether they are constant with the review of the auditor. So, from the given options that the correct one would be B., It is because in the final analytical review, analytical procedure help auditors to take into account any unusual or unexpected account balances.

Thus the correct answer is option B.