The auditor is most likely to rely on analytical procedures alone if a balance is:
A)material and internal controls are good.
B)immaterial and internal controls are poor.
C)immaterial and inherent risk is high.
D)immaterial and internal controls are good.

Question

Quizplus · Accepted Answer

Analytical procedures alone are most likely to be relied upon when a balance is immaterial and internal controls are good, as this reduces the risk of material misstatements and increases the effectiveness of analytical procedures in detecting potential misstatements.

The Auditor Is Most Likely to Rely on Analytical Procedures