Substantive analytical procedures can be used extensively to test revenue and expense accounts.

Question

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Substantive analytical procedures can be used extensively to test revenue and expense accounts as they involve analyzing relationships between different accounts or financial data over time, and comparing them to industry benchmarks or prior years' data to identify any unusual fluctuations or discrepancies that warrant further investigation. However, it's important to note that additional substantive testing may also be necessary to complement the results of analytical procedures and ensure the completeness and accuracy of financial statements.

Substantive Analytical Procedures Can Be Used Extensively to Test Revenue