Analytical procedures performed in the overall review stage of an audit suggest that several accounts have unexpected relationships.The results of these procedures most likely would indicate that
A) Fraud exists within the relevant accounts.
B) Internal control activities are not operating effectively.
C) Additional tests of details are required.
D) The communication with the audit committee should be revised.

Question

Quizplus · Accepted Answer

Unexpected relationships discovered in analytical procedures during the overall review stage of an audit suggest that further investigation is necessary. Additional tests of detail are required to determine the cause of the unexpected relationships before drawing conclusions regarding fraud or internal control. The communication with the audit committee may need to be revised based on the results of the additional testing.

Analytical Procedures Performed in the Overall Review Stage of an Audit