Analytical procedures are substantive tests and if the results of the analytical procedures are favorable they will reduce
A)the extent of tests of details of balances.
B)the extent of tests of controls.
C)the analytical procedures.
D)all of the other tests.

Question

Quizplus · Accepted Answer

Favorable results of analytical procedures would provide assurance over the accuracy of the financial statements, which in turn would reduce the extent of tests of details of balances. Therefore, option A is the correct answer. Options B, C, and D are incorrect because analytical procedures are substantive tests and cannot reduce the extent of tests of controls or other tests.

Analytical Procedures Are Substantive Tests and If the Results of the Analytical