All of the following are analyses that can be performed to search for analytical fraud symptoms except:
A) Comparing financial statement balances with corresponding pro forma balances
B) Comparing changes and trends in financial statement relationships
C) Comparing financial statement balances with nonfinancial information
D) Comparing financial statement balances with those of similar companies
E) All of the above are types of analysis used to search for analytical fraud symptoms

Question

Quizplus · Accepted Answer

Correct. Pro forma balances are not GAAP and, as such, cannot be relied on to test whether fraud has occurred.

All of the Following Are Analyses That Can Be Performed