Analytical Procedures Are Essential for Borrowings Because

Multiple Choice

Analytical procedures are essential for borrowings because:

A) of the paucity of documentation in this area.
B) the large quantity of transactions would make this an expensive area to audit if some other means of reducing tests were not available.
C) there are few internal controls in this area which the auditor can rely upon to reduce substantive testing.
D) tests of details for interest expense and accrued interest can frequently be eliminated when results are favourable.