Which of the Following Is a Correct Statement Regarding Analytical

question 90

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.

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