Which audit technique is specifically performed during a financial statement audit to detect fraud?

The correct choice is analytical review procedures. This technique primarily involves evaluating financial information through analysis of plausible relationships among both financial and non-financial data. It is designed to identify unexpected fluctuations, trends, or relationships that might indicate potential fraud. For instance, if revenue is increasing at a rate inconsistent with industry performance or operating conditions, it could prompt further investigation.

Analytical procedures are particularly effective as they provide auditors with insights into the overall financial health of the organization, helping to highlight anomalies that merit deeper examination. By utilizing these procedures as part of the audit process, auditors can strategically focus their efforts on areas with heightened risk for misstatement or fraud.

Other techniques like data mining or fraud risk assessment do have their merits but are generally broader in scope or applicable in different audit environments. Data mining is more about identifying patterns across large data sets rather than focusing specifically on identifying fraud within financial statements. Similarly, a fraud risk assessment is a proactive measure taken to identify vulnerabilities to fraud before an audit takes place, rather than a technique used explicitly during the audit itself. Surprise audits, while useful for detecting certain types of irregularities, are not specifically tailored to the detection of fraud within the context of a financial statement audit. Thus, analytical review procedures are a vital