An internal auditor plans to use an analytical review to verify the correctness of various operating expenses in a division. The use of an analytical review as a verification technique would not be a preferred approach if.
An internal auditor plans to use an analytical review to verify the correctness of various operating expenses in a division. The use of an analytical review as a verification technique would not be a preferred approach if.
The use of an analytical review as a verification technique would not be preferred if the auditor notes strong indicators of a specific fraud involving the account. Analytical reviews are generally high-level procedures used to identify patterns or trends; they may not be sufficient to detect specific fraudulent activities which require more detailed, targeted forensic investigation methods to uncover.
if there is a fraud, the operating expenses would be inaccurate
There is a need for a specific fraud investigation procedure (Option A) and not just analytical reviews to understand operating expenses.
why inaccurate?
It there is assumption for fraud .... fraud investigator should be involved, not the internal auditor by himself with analytical review
So would not be preferred - A correct
A should be correct because the operating expenses did not indicate any abnormally