Which of the following statements is NOT correct?
A) Analytical procedures are used to isolate accounts or transactions that should be investigated more extensively.
B) Analytical procedures use comparisons and relationships to determine which account balances are in error.
C) In some instances, other types of evidence may be reduced when analytical procedures indicate that an account balance appears reasonable.
D) For certain immaterial accounts, analytical procedures may be the only evidence needed.

Question

Quizplus · Accepted Answer

Analytical procedures use comparisons and relationships to identify potentially unusual account balances or transactions, but they are not used to determine which account balances are in error. The ultimate determination of errors must be made based on additional evidence and investigations.

Which of the Following Statements Is NOT Correct