One Purpose of Performing Preliminary Analytical Procedures in the Planning

question 88

True/False

One purpose of performing preliminary analytical procedures in the planning phase of an audit is to help the auditor make a preliminary assessment of control risk.

---

Definitions:

Household Debt

The total amount of debt, including mortgages, credit cards, loans, etc., owed by all members of a household.

Macroeconomics

The branch of economics that studies overall economic dynamics such as total output, employment levels, and inflation across an entire economy.

Unemployment Rate

A measure of the percentage of the labor force that is jobless and actively seeking employment.

Growth Rate

The percentage increase in the value of a particular variable (such as GDP, population) over a certain period of time, indicating the rate at which it is expanding or declining.