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

Question

Quizplus · Accepted Answer

Analytical procedures are primarily used to identify unusual transactions or events, and areas requiring further investigation, rather than to directly determine which specific account balances are in error. They help in understanding the financial information patterns and identifying any deviations from expected trends, which may then prompt a more detailed examination.

Which One of the Following Statements Is NOT Correct