X \ Excel-band & note amc/X L SSNT 14: Bonds & Lang x \ O wave-H2O . Reports Loan Calculator . Bankr x Connect C Secure | https/ Chapter 3 Homework Saved Help Save & Exlt Submit Required information Analytical Procedures Read the case and answer the questions that follow Part 1 of 2 Audit standards require analytical procedures at two stages during the audit at the risk assessment (planning) phase and again at the end of the audit. They are optionally used as a substantive pracedure during the course of an audit. 10 olnts CONCEPT REVIEW: While analytical procedures are similar in structure in both phases (or substantive testing, if used) of the audit, they have different purposes and often different conclusions It is critical that the auditors recognize and respond to these differences. 5kipped Read the case. Then answer the questions based on t Audit standards require that auditors use analytical procedures at two stages in the audit: at the planning. or risk assessment, level and at the final, or concluding, stages of the audit. In addition, the auditor may decide to use analytical procedures during the substantive testing phase, to obtain evidence about specific accounts to be audited. While analytical procedures may invove similar types of procedures in both the planning and final review phases of the audit, they meet different objectives and require cifferent conclusions and actions on the part of the auditor based on the results. In the planning phase, they are used to help the auditors identify unusual transactions or amounts to highlight the risk of material misstatement. In the final phase of the audit, they are used to assist the auditor in forming the ending conclusions and to ensure all necessary conclusions have been reached Print Woo Industries was being audited by BK&D CPAs. Analytical procedures were performed as part of the risk assessment procedures and helped to identify increased accounts receivable balances as the result of loosened credit policies prompted by heightened competition. As a result, BK&D decided to increase their assessment of inherent risk relative to accounts receivable and sent an increased number of confirmations. Analytical procedures were also used during the substantive testing phase to audit the increases in property, plant, and equipment. After the testing, BK&D determined that they had met the audit standard requirements as they had performed two sets of analytical procedures. This question will be sent to your instructor for grading. Prey 3 4 of 30 Nest > 9:43 AM Type here to search 1/30V2018