3-2. Analytical procedures are extremely useful throughout the audit.

Required:

a. Explain how analytical procedures are useful in

(1) The risk assessment stage of the audit.

(2) The substantive procedures stage of the audit.

(3) Near the end of the audit.

b. List the five sources of information that are available to the auditors in developing expectations for analytical procedures.

c. List and describe four techniques that may be used by the auditors in developing expectations for analytical procedures.