Question 1
One purpose of performing analytical procedures in the planning phase of an audit is to assess the client's financial condition. Explain how the assessment of a client's financial condition can affect the auditor's decisions concerning evidence accumulation in later phases of the audit.
Question 2
________ is the auditor's examination of the client's documents and records to substantiate that the information is included in the financial statements.
◦ Inspection
◦ Recalculation
◦ Observation
◦ Verification