If Preliminary Analytical Procedures Identify Some Unexpected Relationships,the Auditor Would

question 67

True/False

If preliminary analytical procedures identify some unexpected relationships,the auditor would conclude that there is not a heightened risk of material misstatements.

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Definitions:

Financial Statements

Summarized records of a company's financial activities over a specific period, including income statement, balance sheet, statement of cash flows, and statement of changes in equity.

Operating Activities

Operating activities involve the day-to-day functions of a business related to producing and selling its goods or services, reflected in the cash flows from operating activities in financial statements.

Investing Activities

Financial transactions involving the acquisition or disposal of long-term assets and investments not related to the company's primary business operations.

Financing Activities

Transactions related to raising capital or repaying investors, such as issuing stocks or bonds and repaying bank loans.