Analytical procedures are substantive tests and if the results of the analytical procedures are favourable they will reduce
A) the extent of tests of details of balances.
B) the extent of tests of controls.
C) the analytical procedures.
D) all of the other tests.

Question

Quizplus · Accepted Answer

Analytical procedures are substantive tests that can help auditors identify potential misstatements in the financial statements. If the results of analytical procedures are favourable and show no significant deviations from expectations, auditors may be able to reduce the extent of tests of details of balances, as they have a higher level of confidence in the accuracy of the financial statements. However, analytical procedures alone cannot completely replace other substantive testing procedures.

Analytical Procedures Are Substantive Tests and If the Results of the Analytical