Audit standards require that auditors use analytical procedures at two stages in the audit at the planning, or risk assessment, level and at the final, or concluding, stages of the audit In addition, the auditor may decide to use analytical procedures during the substantive testing phase, to obtain evidence about specific accounts to be audited (optional use of analytical procedures) While analytical procedures may involve similar types of procedures in both the planning and final review phases of the audit, they meet different objectives and require different conclusions and actions on the part of the auditor based on the results . In the planning phase, they are used to help the auditors identify unusual transactions or amounts to highlight the risk of material misstatement . In the final phases of the audit, they are used to assist the auditor in forming the ending conclusions and to ensure all necessary conclusions have been reached 03 Read the brief case below, then answer the following questions based on the details: XYZ Limited was being audited by Donald & Sons CPAs Analytical procedures were performed as part of the risk assessment procedures and helped to identify increased accounts receivable balances as the result of loosened credit policies prompted by heightened competition As a result, Donald & Sons CPAs decided to increase their assessment of inherent risk relative to accounts receivable and sent an increased number of confirmations Analytical procedures were also used during the substantive testing phase to audit the Increases in property, plant, and equipment After the testing, Donald & Sons CPAs determined that they had met the audit standard requirements as they had performed two sets of analytical procedures