Final answer:
Favorable results from analytical procedures can lead to fewer detailed balance tests by auditors, provided they still gather enough evidence for their audit opinion.
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 involve evaluation of financial information by studying plausible relationships among both financial and non-financial data.
When auditors obtain results that are consistent with their expectations and suggest that the financial statements are free of material misstatement, they may decide that less detailed testing is needed. However, it is crucial for auditors to still ensure that sufficient appropriate audit evidence is collected to support the audit opinion.