Which of the following activities is an analytical procedure an auditor would perform in the final overall review stage of an audit to ensure that the financial statements are free from material misstatement?
a.
Reading the minutes of the board of directors' meetings for the year under audit.
b.
Obtaining a letter concerning potential liabilities from the client's attorney.
c.
Ensuring that a representation letter signed by management is in the file.
d.
Comparing the current year's financial statements with those of the prior year.
Choice "D" is correct. Analytical procedures performed during the overall final review stage generally include a review of the current and prior year's financial statements.
Choice "a" is incorrect. This would not be considered an analytical procedure.
Choice "b" is incorrect. This would not be considered an analytical procedure.
Choice "c" is incorrect. This would not be considered an analytical procedure.
