Which One of the Following Statements Is NOT Correct

question 2

Multiple Choice

Which one of the following statements is NOT correct?

• A) Analytical procedures use comparisons and relationships to determine which account balances are in error.
• B) In some instances, other types of evidence may be reduced when analytical procedures indicate that an account balance appears reasonable.
• C) Analytical procedures are used to isolate accounts or transactions that should be investigated more extensively.
• D) For certain immaterial accounts, analytical procedures may be the only evidence needed.

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Definitions:

Mortgage Originators

Individuals or institutions that work with borrowers to complete mortgage transactions, originating loans.

Periodic Payments

Payments made or received regularly over a designated period of time, often found in loans or annuities.

Asset Substitution

The practice of replacing an asset in a portfolio with another asset, typically to manage risk or improve returns.

Loan Provisions

Financial terms or conditions included in a loan agreement, such as interest rates or repayment requirements.