Final answer:
The given statement is True. Favorable results from analytical procedures can indeed allow an auditor to reduce the extent of detailed balance testing. This is because such results often indicate lower risks of material misstatement, permitting lesser substantive tests. The correct option is A.
Step-by-step explanation:
The statement that favorable results from analytical procedures may reduce the extent to which the auditor needs to test details of balances is True.
Analytical procedures are used as part of the risk assessment process to identify areas of potential misstatement and to reduce the extent of substantive tests required in the audit process.
When the results from analytical procedures are favorable, indicating expected or normal relationships, the auditor may assess the risks of material misstatement to be lower and can subsequently reduce the extent of detailed testing.
Hence, Option A is correct.