Which of the following statement is false regarding analytical procedures that help auditors assess the overall final presentation of the financial statements?
A)By performing a final analytical review,the audit firm will identify any unusual,unexpected,or unexplained relationships that should be resolved before the issuance of the audit report.
B)A basic five-step process for using analytical procedures applies.
C)Analytical procedures provide evidence on whether certain relationships make sense in light of the knowledge obtained during the audit.
D)Auditing standards require the use of analytical procedures in the final review phase of the audit to assist in identifying ending account relationships that are unusual.

Question

Quizplus · Accepted Answer

The statement that a basic five-step process for using analytical procedures applies is false because auditing standards do not prescribe a specific number of steps for performing analytical procedures. The process is more flexible and based on the auditor's judgment and the specific circumstances of the audit.

Which of the Following Statement Is False Regarding Analytical Procedures