If Preliminary Analytical Procedures Identify Some Unexpected Relationships, the Auditor

question 72

True/False

If preliminary analytical procedures identify some unexpected relationships, the auditor would conclude that there may be a heightened risk of material misstatements.

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Definitions:

Interpretation

The process of explaining or providing the meaning of something, such as a data set, text, concept, or event.

Responsiveness

The degree to which a system or entity promptly reacts to inputs, changes, or stimuli.

Absolute Amounts

Numerical values or quantities that are not relative or comparative and exist independently as total figures.

Economists

Professionals who study, develop, and apply theories and principles of economics to understand how economies work and to analyze economic policies.