Final answer:
The statement about the importance of comparison data in the effectiveness of analytical procedures as audit evidence is true. Analytical methods offer higher precision over graphical methods, and appropriate comparison data is crucial for accurate audit conclusions.
Step-by-step explanation:
The statement that the usefulness of analytical procedures as audit evidence depends significantly on appropriate comparison data is True. Analytical procedures involve comparing the financial information with expected data which can be derived from a variety of sources, including historical financial information of the company, industry averages, or client's budget and projections. The accuracy of these procedures heavily relies on the reliability and relevance of the comparison data. Without appropriate comparison data, the auditor's ability to draw conclusions about the financial information being audited is limited.
For instance, in the context of auditing, the use of analytical methods which are more precise than graphical methods and not limited by physical scale, is important as it allows for the discovery of variances or discrepancies that might indicate issues like errors or fraud. This also ties in with the understanding of the scientific method, including the examination of empirical evidence through direct observation, data collection, or experimentation, ensuring that conclusions are drawn based on accurate and thorough analysis.