Problem 1 Auditing standards describe three overall categories of audit procedures: Procedures to gain an understanding of the client and its environment in order to assess the risks of material misstatement Tests of the operating effectiveness of internal controls Substantive tests designed to detect material misstatements in the financial statements Analytical procedures are used to provide evidence at several stages of an audit and can be designed so that they fit into two of the overall categories listed above. a. Identify the stages of an audit during which analytical procedures are required to be performed. Explain several specific types of analytical procedures that might be used at each stage and the purpose they serve. b. How might analytical procedures be used to provide evidence at another audit stage? Provide a specific example of an analytical procedure that an auditor might choose to use as a substantive procedure. Make something up here. I am interested in learning whether you understand the concepts.