Analytical procedures are substantive tests and, if the results of the analytical procedures are favorable, the auditor would normally
A) reduce the extent of tests of details of balances.
B) reduce the extent of tests of controls.
C) reduce the tests of transactions.
D) reduce all of the other tests.

Question

Quizplus · Accepted Answer

If the results of the analytical procedures are favorable, the auditor would normally reduce the extent of tests of details of balances. This is because analytical procedures can provide sufficient and reliable evidence for certain assertions related to account balances. However, the auditor still needs to perform some tests of details to address specific risks or anomalies identified during the planning stage.

Analytical Procedures Are Substantive Tests And, If the Results of the Analytical