ACCA Audit and Assurance (F8) Practice Exam 2026 – The Complete All-in-One Guide to Achieve Exam Success

Analytical procedures are a key aspect of the audit process and are utilized in multiple stages of the audit. In particular, they are employed during the risk assessment phase to help auditors understand the client's business and identify areas that may pose higher risks of material misstatement. By analyzing financial and non-financial data, auditors can compare expected results with actual results, helping them to form a more informed view of where to focus their further testing.

Additionally, analytical procedures are applied during the overall review stage of the audit. At this point, auditors assess the reasonableness of the financial statements as a whole, ensuring that the figures presented are consistent and plausible based on the data trends and relationships previously observed. This dual application effectively reinforces the reliability of the auditor's conclusions and evaluations throughout the audit process.

In contrast, utilizing analytical procedures solely during inventory counting, only at the beginning of the audit, or exclusively at the end of the audit does not capture the comprehensive role that these procedures play in both assessing risk and reviewing the final financial statements. Thus, the correct utilization of analytical procedures encompasses both the risk assessment and the overall review, justifying why this option is correct.