Which of the following is not a weakness of analytical procedures?
A) Fraudulent financial reporting often reports numbers that appear to be reasonable.
B) The auditor may have no basis for presuming that the data used is accurate.
C) Analytical procedures are usually very cost effective.
D) Improper specification of relationships between the variables used may undermine their effectiveness.
E) Any audit procedure runs some risk of failing to detect material misstatements.

Question

Quizplus · Accepted Answer

Analytical procedures are generally considered cost-effective because they allow auditors to assess financial information and identify potential issues without conducting detailed tests on every aspect of the financial statements. This efficiency is not a weakness but rather a strength of analytical procedures.

Which of the Following Is Not a Weakness of Analytical