When analytical procedures reveal no unusual fluctuations in an account balance, the auditor will probably perform fewer tests of details of balance for that account.

Question

Quizplus · Accepted Answer

This statement is true. Analytical procedures are used to identify unusual trends or fluctuations in account balances, so if no such discrepancies are found, the auditor can rely on the assumption that the account balance is accurate and perform fewer tests of details of balance for that account.

When Analytical Procedures Reveal No Unusual Fluctuations in an Account