An auditors analytical procedures most likely would be facilitated if the entity
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Show Choice "c" is incorrect. Segregation of obsolete inventory would not be an important factor in determining whether analytical procedures would be effective. Choice "d" is incorrect. Correction of internal control weaknesses prior to the beginning of the audit would not affect analytical procedures. Choice "b" is incorrect. Analytical procedures using data developed solely within the entity are not as reliable as analytical procedures using data developed externally. When should an auditor perform analytical procedures?It is also mandatory that the auditor should perform analytical procedures near the end of the audit that assess whether the financial statements are consistent with the auditor's understanding of the entity (ISA 520).
Which of the following is an analytical procedure that an auditor?Which of the following is an analytical procedure that an auditor most likely would perform during the final review stage of an audit? Reading the financial statements and considering whether there are any unusual or unexpected balances that were not previously identified.
What type of analytical procedure would an auditor most likely use in developing?What type of analytical procedure would an auditor most likely use in developing relationships among balance sheet accounts? Trend analysis.
How auditors use analytical procedures?Analytical procedures are used for the following purposes: To assist the auditor in planning the nature, timing, and extent of other auditing procedures. As a substantive test to obtain evidential matter about particular assertions related to account balances or classes of transactions.
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