If No Material Differences Are Found Using Analytical Procedures, and the Auditor

question 65

Multiple Choice

If no material differences are found using analytical procedures, and the auditor concludes that misstatements are not likely to have occurred,

• A) other substantive tests may be reduced.
• B) it will be necessary to increase the tests of balances.
• C) it will not be necessary to perform tests of balances.
• D) it will be necessary to increase the tests of transactions.

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Definitions:

Anxiety

Anxiety is a psychological state characterized by feelings of tension, worried thoughts, and physical changes like increased blood pressure, stemming from anticipation of future concerns.

Xanax

A prescription medication, generically known as alprazolam, used primarily for treating anxiety and panic disorders by acting on the brain and nerves to produce a calming effect.

Bilateral Anterior Cingulotomy

a neurosurgical procedure involving selective destruction of areas in the anterior cingulate cortex to relieve symptoms of mental disorders resistant to other treatments.

Major Depression

A mental disorder characterized by a persistent and severe low mood that is accompanied by low self-esteem and by a loss of interest or pleasure in normally enjoyable activities.