A basic premise underlying the application of analytical procedures is that:

(A) The study of financial ratios is an acceptable alternative to the investigation of unusual fluctuations.

(B) Statistical tests of financial information may lead to the discovery of material misstatements in the financial statements.

(C) Plausible relationships among data may reasonably be expected to exist and continue in the absence of known conditions to the contrary.

(D) These procedures cannot replace tests of balances and transactions.