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Ch$03$ Analytical Procedures $[$LO$3-4]$

Analytical Procedures

Audit standards require analytical procedures at two stages during the audit: at the risk assessment $($planning$)$ phase anc again at the end of the audit. They are optionally used as a substantive procedure during the course of an audit.

CONCEPT REVIEW:

While analytical procedures are similar in structure in both phases $($or substantive testing, if used$)$ of the audit, they have different purposes and often different conclusions. It is critical that the auditors recognize and respond to these differences.

art $2-$ Concept Check

hoose the appropriate terms to complete the statements below.

Auditing standards Idit. analytical procedures at the planning and concluding stages of the

Analytical procedures can also be used as $q,$ procedures in testing.

Analytical procedures at the end of the audit help confirm the $q,$ reached.

Often, analytical procedures are considered the most derstanding of the client and its business. $q,$ procedures for a strong

Part of performing analytical procedures involves considering $q,$