An internal auditor plans to use an analytical review to verify the correctness of various operating expenses in a division. The use of an analytical review as a verification technique would not be a preferred approach if:Select one:a.The auditor notes strong indicators of a specific fraud involving this accountb.The auditor would like to identify large, unusual, or nonrecurring transactions during the year. c.The operating expenses vary in relation to other operating expenses but not in relation to revenue. d.The company has relatively stable operations that have not changed much over the past year

When there is fraud in the account, the would not show a correct view.

Answered: An internal auditor plans to use an…

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter16: Advanced Topics Concerning Complex Auditing Judgments

Section: Chapter Questions

Problem 38RSCQ

See similar textbooks

Related questions

Concept explainers

Question

An internal auditor plans to use an analytical review to verify the correctness of various operating expenses in a division. The use of an analytical review as a verification technique would not be a preferred approach if:

Select one:

The auditor notes strong indicators of a specific fraud involving this account

The auditor would like to identify large, unusual, or nonrecurring transactions during the year.

The operating expenses vary in relation to other operating expenses but not in relation to revenue.

The company has relatively stable operations that have not changed much over the past year

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Audit procedures for items of Financial Statement

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions