Question

Analytical procedures performed in the overall review stage of an audit suggest that several accounts have unexpected relationships. The results of these procedures most likely would indicate that:

a.Additional substantive test of details are required
b.Internal control activities are not operating effectively.
c.Irregularities exist among the relevant account balances.
d.The communication with those charged with governance should be revised.

Answer 1

Analytical procedures performed in the overall review stage of an audit suggest that several accounts have unexpected relationships, indicating the need for additional substantive tests of details.

Step-by-step explanation:

In the overall review stage of an audit, analytical procedures are performed to identify any unexpected relationships in the accounts. If these procedures suggest that several accounts have unexpected relationships, it is an indication that additional substantive tests of details are required.

This means that further examination and testing of the account balances and transactions need to be conducted in order to gather more evidence and ensure the accuracy and completeness of the financial information.

Therefore, the correct answer is a. Additional substantive tests of details are required.