A basic premise underlying the application of ____________ is that it is reasonable to assume that plausible relationships among data exist and continue in the absence of known conditions to the contrary.
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A. B. C. D.C
The answer to this question is C. Analytical procedures.
Analytical procedures involve analyzing financial information to identify unusual or unexpected relationships among data that might indicate possible misstatements or errors. The basic premise underlying the application of analytical procedures is that it is reasonable to assume that plausible relationships among data exist and continue in the absence of known conditions to the contrary.
In other words, when analyzing financial data, it is reasonable to assume that there are logical connections among the data points and that these relationships will continue to hold true unless there is evidence to the contrary. Analytical procedures allow analysts to identify patterns and relationships among financial data that might indicate potential problems, such as fraud or errors in financial reporting.
Independent estimates and statistical claims are not directly related to the use of analytical procedures in financial analysis. Independent estimates involve using external sources to verify or supplement financial information, while statistical claims involve using mathematical techniques to analyze data.
In summary, the basic premise underlying the use of analytical procedures is that there are logical connections among financial data that can be used to identify potential problems or errors.