When using analytical procedures:
A)unusual fluctuations occur when significant unexpected differences between the current year's data and other data used in comparisons are found.
B)and no unusual fluctuations are noted, the possibility of material misstatement is increased.
C)"attention directing" indicates an area where fraud has occurred.
D)and no unusual fluctuations are noted, tests of details of balances can be eliminated,

Question

Quizplus · Accepted Answer

Unusual fluctuations are a red flag for potential material misstatements and should be investigated further.

Answer: D 
 If no unusual fluctuations are noted in the analytical procedures, it can be a sign that accounts are not materially misstated, and tests of details of balances can be reduced or eliminated.

When Using Analytical Procedures