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Proactive searching for analytical symptoms means that we are looking for accounts that appear too high or too low or that are unusual in some other way. True or False?

User MaxiNet
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Final answer:

Proactive searching for analytical symptoms is indeed the process of identifying unusual financial data points that could indicate errors or anomalies, a practice which is true and commonly used by experts.

Step-by-step explanation:

Proactive searching for analytical symptoms means that we are actively looking for accounts or data points that deviate from expected norms, either by being too high, too low, or unusual in some other way. This is a true statement. Experts often have a good intuition about what to expect and use that intuition to guide a more detailed analysis, which can help identify possible errors or anomalies. This helps in thoroughly examining the financial health or performance metrics of a business or in evaluating economic policies, where positive analysis involves assessing factual statements that can be tested, and normative analysis refers to opinions based on values which cannot be proven true or false.

User Tom Walters
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