In conducting analytical procedures,which of the following information sources are not generally considered to be reliable?
A)Information generated using consistent accounting methods.
B)Information generated by an accounting system with effective internal controls.
C)Information generated by an accounting system with ineffective internal controls.
D)Audited information.

Question

Quizplus · Accepted Answer

Information generated by an accounting system with ineffective internal controls is not generally considered to be reliable as it lacks accuracy, completeness, and consistency. The internal controls play a crucial role in ensuring the reliability of accounting information, and ineffective internal controls increase the risk of errors, fraud, and misstatements in the financial statements. Therefore, analytical procedures should consider information generated by accounting systems with effective internal controls and audited information that has been verified and reviewed by external auditors. Information generated using consistent accounting methods is also reliable as it enhances comparability and consistency in financial reporting.

In Conducting Analytical Procedures,which of the Following Information Sources Are