Which of the following statements is true concerning analytical procedures? 

A. Analytical procedures can replace tests of controls in gathering evidence to support the assessed risks of material misstatement. 

B. When expectations are more precise, significant variances are more likely to be due to misstatements. 

C. Analytical procedures usually involve comparisons of ratios developed from recorded amounts to assertions developed by management. 

D. Analytical procedures are more efficient, but not more effective, than tests of details and transactions.

Answer rating: 100% (QA)

B is correct When expectations are more precise significant variances are m... View the full answer