If preliminary analytical procedures identify some unexpected relationships, the auditor would conclude that there may be a heightened risk of material misstatements.

Question

Quizplus · Accepted Answer

If the preliminary analytical procedures identify unexpected relationships or results, the auditor would conclude that there may be a higher risk of material misstatements in the financial statements. This would require the auditor to perform additional audit procedures to mitigate the risk and obtain sufficient evidence to support the financial statement assertions.

If Preliminary Analytical Procedures Identify Some Unexpected Relationships, the Auditor