A basic premise underlying analytical
procedures is that
a. The study of financial ratios is an
acceptable alternative to the
investigation of unusual fluctuations.
b. Plausible relationships among data
may reasonably be expected to exist
and continue in the absence of
known conditions to the contrary.
c. These procedures cannot replace tests of
details of transactions and balances.
d. Statistical tests of financial information
may lead to the detection of material
misstatements in the financial
statements.
procedures is that
a. The study of financial ratios is an
acceptable alternative to the
investigation of unusual fluctuations.
b. Plausible relationships among data
may reasonably be expected to exist
and continue in the absence of
known conditions to the contrary.
c. These procedures cannot replace tests of
details of transactions and balances.
d. Statistical tests of financial information
may lead to the detection of material
misstatements in the financial
statements.