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AICPA CPA-Auditing Exam - Topic 2 Question 114 Discussion

Analytical procedures used in the overall review stage of an audit generally include:
C) Considering unusual or unexpected account balances that were not previously identified.
A) Gathering evidence concerning account balances that have not changed from the prior year.
B) Retesting control activities that appeared to be ineffective during the assessment of control risk.
D) Performing tests of transactions to corroborate management's financial statement assertions.

AICPA CPA-Auditing Exam - Topic 2 Question 114 Discussion

Actual exam question for AICPA's CPA-Auditing exam
Question #: 114
Topic #: 2
[All CPA-Auditing Questions]

Analytical procedures used in the overall review stage of an audit generally include:

Show Suggested Answer Hide Answer
Suggested Answer: C

Choice 'c' is correct. The objective of analytical procedures used in the overall review stage of the audit is to assist the auditor in assessing conclusions reached and in the evaluation of the overall financial statement presentation. Analytical procedures applied in the overall review stage are used to consider the adequacy of evidence gathered in response to unusual or unexpected balances identified in planning the audit, and to identify unusual or unexpected balances or relationships that were not previously identified.

Choice 'a' is incorrect. If analytical procedures are used to gather evidence about account balances that have not changed from last year, they are functioning as a substantive test rather than as a final review procedure.

Choice 'b' is incorrect. Analytical procedures are not used to test controls.

Choice 'd' is incorrect. If analytical procedures are used as a test of transactions, they are functioning as a substantive test rather than as a final review procedure.


by Valentin at Jul 13, 2025, 02:50 PM

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Maricela
7 months ago
Totally agree with C! It's crucial to spot those unexpected balances.
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Gregoria
7 months ago
I think A is also important, but not as much as C.
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Thad
7 months ago
B seems off; we shouldn't retest ineffective controls at this stage.
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Alyce
7 months ago
Wait, are we really still considering account balances that haven't changed?
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Mireya
8 months ago
C is definitely part of the review stage!
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Tashia
8 months ago
I’m leaning towards option C as well, but I remember there was some discussion about the importance of considering prior year balances too.
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Alexis
8 months ago
I feel like option D might be relevant too, but I can't recall if it specifically falls under analytical procedures.
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Yoko
8 months ago
I remember practicing a question similar to this, and I think gathering evidence on unchanged balances isn't really part of analytical procedures.
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Salena
9 months ago
I think option C sounds right because we often look for unusual balances during the review stage, but I'm not completely sure.
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Vivan
9 months ago
I think I know the answer, but I want to double-check my understanding. Analytical procedures are used to identify areas that need further investigation, not to corroborate management's assertions, right? So option C seems like the best choice.
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Arleen
9 months ago
Okay, I've got this. Analytical procedures in the overall review stage are focused on identifying unusual or unexpected account balances, not just gathering evidence about balances that haven't changed. I'm pretty sure option C is the correct answer here.
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Cristen
9 months ago
Hmm, I'm a bit unsure about this one. The options seem similar, and I'm not entirely confident in my understanding of the differences between the various analytical procedures. I'll need to review my notes and try to recall the key characteristics of each.
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Coral
9 months ago
This seems like a straightforward question about analytical procedures used in the overall review stage of an audit. I'll need to carefully consider the options and think about which one best describes the purpose of these procedures.
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Samira
11 months ago
Ah, the age-old question: which analytical procedure is the most analytical? I'm going with C. Gotta find those anomalies, even if they're hiding in plain sight.
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Sina
10 months ago
I agree, but I think D is crucial too, we need to verify the transactions for accuracy.
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Rebeca
11 months ago
I think A is also important, we need to check for consistency in account balances.
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Josphine
11 months ago
I believe D is more related to tests of transactions, not analytical procedures.
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Reena
11 months ago
C, without a doubt. Gathering evidence on unchanged balances or testing transactions? That's basic audit stuff. The review stage is all about finding the outliers, the red flags. C is the clear winner here.
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Vilma
11 months ago
User 3: I think C is the best option too, it's all about identifying those red flags.
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Louann
11 months ago
User 2: Yeah, looking for those unusual or unexpected account balances is key.
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Clarinda
11 months ago
User 1: I agree, C is definitely the way to go in the overall review stage.
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Noel
12 months ago
I'm not sure, but I think D could also be a valid option.
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Carlee
12 months ago
I'm torn between B and C, but I think C is the better choice. Who would want to retest controls that are already known to be ineffective? That just sounds like a waste of time.
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Angelica
12 months ago
I agree with Sanda, considering unusual account balances makes sense.
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Willard
12 months ago
Hmm, I'm going with C as well. It's the only one that mentions considering unusual or unexpected account balances, which is key in the review process.
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Stevie
12 months ago
Definitely C. Identifying unusual account balances is the whole point of the overall review stage. Otherwise, what's the point of the review?
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Chanel
11 months ago
I think it's important to consider all options and not just focus on one aspect of the audit process.
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Carlota
11 months ago
I agree, identifying unusual account balances is crucial in the overall review stage.
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An
12 months ago
I think C is the correct answer. Analytical procedures are used to identify unusual or unexpected account balances that could indicate potential misstatements.
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Lilli
11 months ago
I think it could also be A, gathering evidence concerning account balances that have not changed from the prior year is important in the overall review stage.
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Marshall
11 months ago
I agree, C is the correct answer. Analytical procedures help in identifying unusual account balances.
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Sanda
1 year ago
I think the answer is C.
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