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:

Question

Quizplus · Accepted Answer

Choice "C" is correct. If analytical procedures suggest unexpected relationships, the auditor would perform additional tests of details of the accounts involved. Choice "A" is incorrect. The identification of unexpected relationships as a result of analytical procedures does not necessarily mean that irregularities exist in the relevant account balances, although this is a possible Explanation. Choice "B" is incorrect. The identification of unexpected relationships as a result of analytical procedures does not necessarily mean that internal control activities are not operating effectively, although this is a possible Explanation. Choice "D" is incorrect. The identification of unexpected relationships as a result of analytical procedures does not necessarily mean that communication with those charged with governance should be revised, although this is a possible consequence.

Analytical Procedures Performed in the Overall Review Stage of an Audit