Which of the following statements regarding analytical procedures is not correct?
A) Analytical procedures are required on all audits.
B) For certain accounts with small balances, analytical procedures alone may be sufficient evidence.
C) Analytical tests emphasize a comparison of client internal controls to IFRS.
D) Analytical procedures can be used as substantive tests.

Question

Quizplus · Accepted Answer

Analytical procedures involve comparisons and analyses of financial information, not a comparison of client internal controls to International Financial Reporting Standards (IFRS). They are used to understand financial relationships, identify areas of risk, and provide evidence, but they do not directly evaluate the compliance of internal controls with IFRS.

Which of the Following Statements Regarding Analytical Procedures Is Not