C. Design and execute response to risks

Substantive analytical procedures are typically performed during the phase where the auditor designs and executes responses to address the risks that have been identified. These procedures involve tests that are more extensive than the preliminary analytical procedures conducted earlier in the audit process, which focus on understanding the client's business and assessing the accounting estimates and significant balances. By the time the auditor reaches the phase of designing and executing responses to risks, they would use various audit procedures, including substantive analytical procedures, to obtain evidence supporting the validity of the financial statement items.