The Primary Objective of Performing Analytical Procedures in the Final

question 30

Multiple Choice

The primary objective of performing analytical procedures 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 the auditor in evaluating the overall financial statement presentation
• D)identify areas that represent specific risks relevant to the audit

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Definitions:

Dividends

Funds disbursed by a company to its shareholders, representing a share of the profits earned by the company.

Total Liabilities

The sum of all financial obligations a company owes to outside parties.

Expenses

Costs incurred by a business in the process of earning revenue, including operational costs, salaries, and utilities.

Retained Earnings

Part of a company's profit that is held or retained and saved for future use, reinvestment, or to pay debt rather than being paid out as dividends to shareholders.