C is corrent because a preliminary review is first made and then tests of controls are used to provide reasonable assurance that the accounting control procedures on which the auditor intends to rely are being followed as prescribed.
A is incorrect because questionnaires and checklists only apply to the preliminary review of the system and because other means may be used at that stage (e.g., decision tables, flowcharts).
B is incorrect because substantive tests are used to test account balances, not to test controls.
D is incorrect because analytical review procedures are substantive tests.
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