The Primary Objective of Analytical Procedures Used in the Final

question 3

Multiple Choice

The primary objective of analytical procedures used in the final review stage of an audit is to

• A) Obtain evidence from details tested to corroborate management assertions.
• B) Obtain evidence on the validity of the assessment of control risk.
• C) Assist auditors in evaluating the overall financial statement presentation.
• D) Identify areas that represent specific risks relevant to the audit.

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Definitions:

Ending Capital Balance

The amount of money that a company or individual has in their capital account at the end of a fiscal period, after all transactions have been accounted for.

Net Purchases

The total amount of purchases after subtracting any purchases returns, allowances, and discounts.

Withdrawal Account

An account in a partnership or sole proprietorship that records the amounts taken out of the business by the owner for personal use.