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What is the purpose of analytical procedures in an audit?

  1. A Evaluating financial information through relationships and trends to identify unusual items
  2. B Testing every transaction
  3. C Preparing the accounts
  4. D Calculating tax
Answer

Evaluating financial information through relationships and trends to identify unusual items

They are required at the planning and review stages, and can also serve as substantive procedures where relationships are predictable.

All CA MCQs

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