It is not unusual for auditors to obtain significant assurance from analytical procedures applied to cash balances.

Question

Quizplus · Accepted Answer

Analytical procedures are less effective for cash balances due to the nature of cash transactions being high volume and low value, making it difficult to apply expectations or trends for analysis. Auditors typically rely more on direct verification methods such as bank confirmations for cash balances.

It Is Not Unusual for Auditors to Obtain Significant Assurance