This question is just not making sense to me. Thoughts anyone??
An auditor's analytical procedures most likely would be facilitated if the entity:
A.
segregates obsolete inventory before the physical inventory count.
B. CORRECT
uses a standard cost system that produces variance reports.
C.
corrects material weaknesses in internal control before the beginning of the audit.
Incorrect D.
develops its data from sources solely within the entity.
Analytical procedures consist of evaluations of financial information made by a study of plausible relationships among both financial and nonfinancial data. A basic premise underlying the application of analytical procedures is that plausible relationships among data may reasonably be expected to exist and continue in the absence of known conditions to the contrary. Because a standard cost system is a budgeted unit cost system designed to alert management when actual costs of production differ from expected costs, the plausible relationships the auditor looks for in analytical procedures have already been established in a standard cost system. Therefore, an auditor's analytical procedures most likely would be facilitated if the entity uses a standard cost system that produces variance reports.
.