Analytical procedures can be used in which of the following ways?a. As a means of overall review near the end of the audit.b. As “attention-directing” methods when planning an audit at the beginning.c. As substantive audit procedures to obtain evidence during an audit.d. All of the above.

Analytical procedures can be used in which of the following ways?a. As a means of overall review near the end of the audit.b. As “attention-directing” methods when planning an audit at the beginning.c. As substantive audit procedures to obtain evidence during an audit.d. All of the above.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Audit planning is a vital area of the audit primarily conducted at the beginning of audit process to…

A: Audit engagement is defined as the arrangement formed between auditor and the client in order to…

Q: Depending on the severity of the audit issue, follow- Re-auditing the processes that originally led…

A: In an audit process, the following activities are involved: Planning Fieldwork Reporting or…

Q: Which of the following tests are considered further audit procedures that may be designed after…

A: Substantive test of details are considered further audit procedures that may be designed after…

Q: Auditors need to identify audit risk in planning an audit engagement. In doing so, the audit risk…

A: Answer (a) – Audit Risk – Audit risk is a risk that the auditor may give inappropriate opinion when…

Q: Which one below is not an example of auditors'substantive testing? Select one: a. Controls testing.…

A: Substantive testing is such an audit procedure that is used for examination of financial statement…

Q: Which of the following BEST (select one) describes the purpose of the audit work program? a) To…

A: Audit refers to verifying balances of financial statements of a organization by using proper…

Q: The documentation of the audit strategy is a record of the planned nature, timing and extent of risk…

A: The answer for the True or false question and relevant explanation are presented hereunder : What is…

Q: Each of the following steps should be performed prior to accepting an audit engagement except:

A: Explanation and answer is given below,

Q: For auditors, the term materiality is important, both at the planning stage of the audit and at the…

A: Materiality is a concept in accounting refers to that all the material facts / items should be…

Q: A tool used by auditors that serves as a cue to guiding audit planning around management’s…

A: Auditor is an individual approved to audit and confirm the exactness of monetary records and…

Q: During an audit, the internal auditor should consider the following factor(s) in determining the…

A: Audit procedures are the techniques, processes, and methods that auditors use to obtain reliable…

Q: What is meant by the term 'analytical procedures' and Describe the situations in the audit when…

A: Analytical procedures refer to the evaluation of financial information made by studying plausible…

Q: What are the different types of analytical procedures? Describe how they may be utilized in an audit…

A: Analytical methods : Analytical processes are the techniques used by auditors to analyze the…

Q: Describe FOUR matters that an auditor needs to keep in mind when considering how useful the…

A: According to para 4 of INTERNATIONAL STANDARD ON AUDITING 520, "Analytical procedures are the…

Q: What are the objectives of ISA 520? O a. To obtain evidence from third parties O b. To obtain the…

A: SOLUTION- ISA 520- IT DEALS WITH THE AUDITORS USE OF ANALYTICAL PROCEDURES AS SUBSTANTIVE PROCEDURES…

Q: If recommendations are made to the audit report noted problems and weaknesses, written responses…

A: When recommendations are made to the audit report noted problems and weaknesses, written responses…

Q: What are the purposes of preliminary analytical procedures and how does it differ from the…

A: Lets understand the basics. Auditor is responsible for making a correct opinion regarding the…

Q: During substantive procedures, performing analytical procedures satisfies which primary audit…

A: Substantive Procedures Inspection techniques or strategies used to identify or avoid errors in…

Q: Auditors must collect sufficient and appropriate audit evidence to reduce audit risk. This audit…

A: Auditors must collect sufficient and appropriate audit evidence to reduce audit risk. This audit…

Q: Which of the following BEST (select one) describes the purpose of preliminary planning: a) To gain…

A: Auditing means process of checking and reviewing books of accounts and other matters in order to…

Q: termine both the relationship of risks in the planning of the audit and factors that influence those…

A: An audit is when an auditor examines or inspects various books of accounts, followed by a physical…

Q: How are analytical procedures used near the end of the audit?

Q: Defining what lapping is and how it might be discovered by an auditor is the first step. The auditor…

A: Lapping is a fraudster activity in which one persons money is recorded as payment received from…

Q: What are the audit procedures for subsequent events and give examples

A: Subsequent event is defined as the occasion which occurred after the reporting duration but before…

Q: The main objective of audit planning is to ensure appropriate attention is given to all areas of the…

A: Audit means checking and examining the accuracy and authenticity of financial statements by…

Q: Explain the circumstances when an auditor needs to assess the components of the audit risk model…

Q: All auditing standards have: Select one: a. An executive summary b. An objective c. A summary d.…

A: Audit is the process of checking and verifying books of account of the business in order to ensure…

Q: Define audit risk and describe how it can be broken down into the three separate components of the…

A: Auditing: In auditing, auditors verify the correctness and fair presentation of financial…

Q: Analytical procedures are a critical part of audit work. Describe at least three different…

A: The audit process includes analytical techniques, which involve evaluating financial data by looking…

Q: Explain how analytical procedures are useful in: (1) The risk assessment stage of the audit. (2) The…

A: As per standards on auditing (SA) 520 “Analytical Procedures“, The term “analytical procedures” mean…

Q: During the planning phase of an audit client, Ana Alitick (auditor) utilises analytical procedures.…

A: Introduction: An audit is the examination or safety checks of various books of accounts by an…

Q: Discuss briefly: - The implementation of the overall audit strategy.

A: An audit strategy is the overall plan and framework for conducting an audit. The primary goal of an…

Q: audit function: a) Risk assessment provides a framework for allocating limited resources to achieve…

A: Risk: It refers to the price paid for earning maximum returns. In business risk there is probability…

Q: The following are procedures to obtain audit evidence except: a. Physical examination. b.…

A: Audit is the process of checking and examining books of accounts and financial information in order…

Question

Analytical procedures can be used in which of the following ways?
a. As a means of overall review near the end of the audit.
b. As “attention-directing” methods when planning an audit at the beginning.
c. As substantive audit procedures to obtain evidence during an audit.
d. All of the above.

Definition Definition Methods and techniques used by the auditor to gather the appropriate evidence so that a true and fair judgment can be made on the quality of the financial statements of the client. Audit procedures are developed after determining audit objectives, scope, approach, and risk assessment.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Explanation:

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Audit Strategy, Audit Planning and Audit Programme

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

d) Name the four types of tests auditors normally perform in an audit after risk assessment is done.
Analytical procedures are required as a part of the: Internal control assessment. Detailed tests of balances. Procedures performed near the end of the audit. Substantive testing.
In assessing control risk, an auditor selects from a variety of techniques, including A. Inquiry and recalculation B. Reperformance and observation C. Comparison and confirmation D. Inspection and verification
Which of the following is ordinarily performed last in the audit examination?a. Securing a signed engagement letter from the client.b. Performing tests of controls.c. Performing a review for subsequent events.d. Obtaining signed written representations.
Explain the relationship betweenaudit objectives and theaccumulation of audit evidence.
Identify benefits of using analytical procedures in the audit process
Question Discuss the objective of analytical procedures used in the overall review stage of the audit.
Analytical procedures are a critical part of audit work. Describe at least three different analytical procedures and explain how to perform each. Specify what the results will reveal about the client.
Which of the following documents would be the most reliable evidence for an audit? Group of answer choices A. Confirmation from third party directly obtained by the audit team B. Confirmation from third party that is forwarded by the audit client. C. Observation cited in the report documented by the audit team D. Observation cited in the report documented by third party with concurrence of the audit team
Audit planning is conducted at the beginning of the audit process to establish the overall audit strategy and detail the specific procedures to be carried out to implement the strategy and complete the audit. Briefly explain the steps in audit planning.