The Primary Purpose of Performing Analytical Procedures in the Testing

question 46

Multiple Choice

The primary purpose of performing analytical procedures in the testing phase of an audit is to:

• A) assess the going concern assumption.
• B) reduce detailed tests.
• C) help the auditor obtain an understanding of the client's industry and business.
• D) indicate possible misstatements (attention directing).

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Definitions:

SMEs

Small and Medium-sized Enterprises, which are businesses with personnel numbers or financial turnover falling below certain predefined limits.