Which of the following is not true regarding preliminary analytical procedures performed by the auditor when planning the audit?
a. The primary preliminary 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.
d
You might also like to view...
The allowance method of accounting for bad debts matches the estimated loss from uncollectible accounts receivable against the sales they helped produce.
Answer the following statement true (T) or false (F)
Refer to Instruction 8.1. If your firm felt very confident that interest rates would fall or, at worst, remain at current levels, and were very confident about the firm's credit rating for the next 10 years, which strategy would you likely choose?
(Assume your firm is borrowing money.) A) Strategy #3 B) Strategy #2 C) Strategy #1 D) Strategy #1, #2, or #3; you are indifferent among the choices.
______________________________ are simple counts of the number of documents entered.
Fill in the blank(s) with the appropriate word(s).
For purposes of the ยง 267 loss disallowance provision, a taxpayer's aunt is a related party
a. True b. False Indicate whether the statement is true or false