Chapter 9, Problem 59RSCQ

To determine

Introduction: Planning analytical procedures help auditors identify areas of potential material misstatements. The basic objective behind planning the analytical procedures is to help the auditor to find out the accounts which carry a comparatively high risk of misstatements during the planning phase so that a detailed plan can be laid out that can serve as a base for designing and planning the solution for the assessed risks.

The expectations differ between the planning analytical procedures and substantive analytical procedures and the factors influencing the precision of expectations.