Analytical procedures risk for presentation and disclosure should always be assessed at maximum for both investing and financing cycles.

Question

Quizplus · Accepted Answer

Analytical procedures are more likely to detect misstatements in the presentation and disclosure of financial information when the risk of misstatement is higher. The investing and financing cycles are typically associated with higher risks of misstatement due to the complexity of the transactions involved and the potential for management to manipulate financial results.

Analytical Procedures Risk for Presentation and Disclosure Should Always Be