Favourable results from analytical procedures reduce the extent to which the auditor needs to test details of balances.

Question

Quizplus · Accepted Answer

Favourable results from analytical procedures indicate a lower risk of material misstatement and can therefore reduce the extent to which the auditor needs to test details of balances. However, the auditor still needs to exercise professional judgment and perform sufficient testing to obtain reasonable assurance about the financial statements.

Favourable Results from Analytical Procedures Reduce the Extent to Which