Which of the Following Statement Is False Regarding Analytical Procedures

question 4

Multiple Choice

Which of the following statement is false regarding analytical procedures that help auditors assess the overall final presentation of the financial statements?

• A)By performing a final analytical review,the audit firm will identify any unusual,unexpected,or unexplained relationships that should be resolved before the issuance of the audit report.
• B)A basic five-step process for using analytical procedures applies.
• C)Analytical procedures provide evidence on whether certain relationships make sense in light of the knowledge obtained during the audit.
• D)Auditing standards require the use of analytical procedures in the final review phase of the audit to assist in identifying ending account relationships that are unusual.

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Definitions:

Estoppel

A legal principle that prevents a person from denying or asserting anything to the contrary of what has been established as the truth in legal proceedings.

Principal

Principal refers to a main party to a transaction, contract, or financial instrument, as opposed to an agent who acts on someone else's behalf.

Agent

A person or entity authorized to act on behalf of another (known as the principal) in legal or business matters.

Authority

The legal power or right given to an individual or entity to carry out certain actions or to make decisions.