Which of the following statements is false regarding analytical procedures that help auditors assess the overall final presentation of the financial statements?
A. By performing a final analytical review, the audit firm will identify any unusual, unexpected or unexplained relationships that should be resolved before the issuance of the audit report.
B. A basic five step process for using analytical procedures applies.
C. Analytical procedures provide evidence on whether certain relationships make sense in light of the knowledge obtained during the audit.
D. Auditing standards require the use of analytical procedures in the final review phase of the audit to assist in identifying ending account relationships that are unusual.
Answer: B
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