Which of the Following Is Not True Regarding Planning Analytical

question 64

Multiple Choice

Which of the following is not true regarding planning analytical procedures performed by the auditor when planning the audit?

• A)The primary planning analytical procedure for stockholders' equity accounts is a comparison of current year account balances with prior year account balances.
• B)If there are unusual or unexpected relationships,the planned audit procedures would be adjusted to address the potential material misstatements.
• C)The auditor should have an expectation as to the nature and magnitude of any account balance changes.
• D)Auditors show focus on just the numbers when performing analytical procedures.

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Definitions:

Consolidated Statement

A financial report that shows aggregated financial data for a parent company and its subsidiaries, presenting the financial position and results of operations as a single entity.

Summarized Listing

A condensed version of a list that highlights main points or entries, often used for quick reference.

Fund Balances

The net assets in governmental funds, representing the difference between assets and liabilities.

Operating Fund

A fund used by an organization to manage its day-to-day operational expenses.