The enquiries of the client that result from preliminary analytical review provide direct evidence about the amounts in the financial statements.

Question

Quizplus · Accepted Answer

Preliminary analytical review helps in identifying areas of potential risk or concern by comparing financial information over time or against industry norms, but it does not provide direct evidence about specific amounts in the financial statements. Direct evidence would come from detailed testing of transactions and balances.

The Enquiries of the Client That Result from Preliminary Analytical