Analytical review of related expense accounts when auditing accounts payable would be used when control risk is assessed as low.

Question

Quizplus · Accepted Answer

When control risk is assessed as low, the auditor would rely more on substantive procedures rather than tests of controls. Analytical review of related expense accounts would be a substantive procedure that the auditor would use to detect any unusual or unexpected patterns or trends in the accounts payable balances. This would help the auditor to identify any potential misstatements or errors in the accounts payable balance. Therefore, the statement is true.

Analytical Review of Related Expense Accounts When Auditing Accounts Payable