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Analytical procedures used in the overall review stage of an audit generally include:
Suggested Answer: C
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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.
32 comments · newest first
MA
Maricela
10 months ago
Totally agree with C! It's crucial to spot those unexpected balances.
GR
Gregoria
10 months ago
I think A is also important, but not as much as C.
TH
Thad
10 months ago
B seems off; we shouldn't retest ineffective controls at this stage.
AL
Alyce
10 months ago
Wait, are we really still considering account balances that haven't changed?
MI
Mireya
11 months ago
C is definitely part of the review stage!
TA
Tashia
11 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.
AL
Alexis
11 months ago
I feel like option D might be relevant too, but I can't recall if it specifically falls under analytical procedures.
YO
Yoko
11 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.
SA
Salena
12 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.
VI
Vivan
12 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.
AR
Arleen
12 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.
CR
Cristen
1 year 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.
CO
Coral
1 year 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.
SA
Samira
1 year 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.
SI
Sina
1 year ago
I agree, but I think D is crucial too, we need to verify the transactions for accuracy.
RE
Rebeca
1 year ago
I think A is also important, we need to check for consistency in account balances.
JO
Josphine
1 year ago
I believe D is more related to tests of transactions, not analytical procedures.
RE
Reena
1 year 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.
VI
Vilma
1 year ago
User 3: I think C is the best option too, it's all about identifying those red flags.
LO
Louann
1 year ago
User 2: Yeah, looking for those unusual or unexpected account balances is key.
CL
Clarinda
1 year ago
User 1: I agree, C is definitely the way to go in the overall review stage.
NO
Noel
1 year ago
I'm not sure, but I think D could also be a valid option.
CA
Carlee
1 year 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.
AN
Angelica
1 year ago
I agree with Sanda, considering unusual account balances makes sense.
WI
Willard
1 year 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.
ST
Stevie
1 year ago
Definitely C. Identifying unusual account balances is the whole point of the overall review stage. Otherwise, what's the point of the review?
CH
Chanel
1 year ago
I think it's important to consider all options and not just focus on one aspect of the audit process.
CA
Carlota
1 year ago
I agree, identifying unusual account balances is crucial in the overall review stage.
AN
An
1 year ago
I think C is the correct answer. Analytical procedures are used to identify unusual or unexpected account balances that could indicate potential misstatements.
LI
Lilli
1 year 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.
MA
Marshall
1 year ago
I agree, C is the correct answer. Analytical procedures help in identifying unusual account balances.
SA
Sanda
1 year ago
I think the answer is C.