Multiple Choice
Which of the following is a correct statement regarding analytical procedures?
A) If an auditor identifies a possible misstatement in sales using analytical procedures, accounts payable will be the likely offsetting misstatement.
B) Auditors should also compare the results of their analytical procedures to budgets and industry trends.
C) If sales are overstated, the income statement will be incorrect, but the balance sheet will be correct.
D) If an analytical procedure uncovers an unusual fluctuation, the auditor must assume fraud is involved.
Correct Answer:
Verified
Correct Answer:
Verified
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