If no material fluctuations are found using analytical procedures and the auditor concludes that differences should not have occurred,
A)it will be necessary to increase the tests of details of balances.
B)other tests may be reduced.
C)it will be necessary to increase the tests of controls.
D)it will not be necessary to perform tests of details of balances.

Question

Quizplus · Accepted Answer

If no material fluctuations are found using analytical procedures and the auditor concludes that differences should not have occurred, it is reasonable to reduce other tests. However, it is still necessary to perform some tests of details of balances to ensure the financial statements are free from material misstatement. Therefore, choice B is the best option.

If No Material Fluctuations Are Found Using Analytical Procedures and the Auditor