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) For certain immaterial accounts, analytical procedures may be the only evidence needed.
C) In some instances, other types of evidence may be reduced when analytical procedures indicate that an account balance appears reasonable.
D) Analytical procedures use supporting documentation to determine which account balances need additional detailed procedures.

Question

Quizplus · Accepted Answer

Analytical procedures do not use supporting documentation to determine which account balances need additional detailed procedures. Instead, they rely on comparisons and relationships between different financial statement accounts to identify potential issues or inconsistencies that require further investigation.

Which of the Following Statements Is Not Correct