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.

Comprehend tire pressure monitoring systems and their regulatory requirements.

Gain knowledge on vehicle instrumentation customization and maintenance techniques.

Understand the basic principles of electrical testing and diagnostics in vehicle systems.

Learn about the operational principles of vehicle electronic devices and their components.

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Definitions:

Incoming Cash

Money that is received by a business or individual, originating from various sources like sales, investments, loans, or other income.

Outgoing Cash

Money that is spent or disbursed by a business, including expenses, purchases, and other payments.

Manufacturing Business

A type of business that changes basic inputs into products that are sold to individual customers.

General Motors

A multinational corporation headquartered in the United States that designs, manufactures, markets, and distributes vehicles and vehicle parts.