Analysis is a substantive audit procedure that auditors use when they are performing financial statement audits.

1.Which of the following describes analysis?(several choices may be correct!)

a. Evaluation of inter-relationships between elements of financial and non-financial information

b. Comparison of relationships with auditor's assessments of the expected relationships and balances

c. Investigation of significant fluctuations

d. Only used by auditors at the planning stage of the audit

e. Observation of control procedures used by the client

f. Used by auditors during the execution phase of the audit as a substantive procedure

2.Which of the following describes the auditor's objectives in using analysis during the planning stage of the audit?(several choices may be correct!)

a. Used as a substantive procedure

b. Used to understand the client's business

c. Assists in identifying areas with a high inherent risk of material misstatement

d. Assists in formulating the audit opinion

e. Used to obtain substantive assurance about financial statement assertions

f. Assist in evaluating the audit work completed