Assume That Application of Analytical Procedures Revealed Significant Unexplained Differences

question 11

Multiple Choice

Assume that application of analytical procedures revealed significant unexplained differences between recorded amounts and the auditor's expectations.If management is unable to provide an acceptable explanation, the auditor should

• A)Consider the matter a scope limitation.
• B)Perform additional audit procedures to investigate the matter further.
• C)Intensify the audit with the expectation of detecting management fraud.
• D)Withdraw from the engagement.

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Definitions:

Reverse Discrimination

Discrimination against members of a dominant or majority group, often as an unintended consequence of affirmative action policies.

Disparate Treatment Discrimination

A form of discrimination where individuals are treated unfairly or differently based on protected characteristics such as race, gender, age, or religion.

Drug-Free Workplace Act

A U.S. federal regulation requiring certain employers to work towards maintaining a workplace free of drugs and substance abuse through policies, programs, and sometimes testing.

Illegal Drugs

Substances whose production, sale, or possession is prohibited by law due to their potential for abuse or harm.