Assume That Application of Analytical Procedures Revealed Significant Unexplained Differences

question 3

Multiple Choice

Assume that application of analytical procedures revealed significant unexplained differences between recorded amounts and the expectations (estimates) developed by the auditor. 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:

Social organizations

Structured groups of people who come together to pursue common interests or fulfill societal functions, such as families, businesses, and governmental bodies.

Openness

The quality of being open and willing to receive new ideas, feedback, or experiences.

Minority

A term used to describe individuals or groups who are part of a smaller segment of the population, distinct from the majority in terms of race, ethnicity, culture, or other characteristics.

Minority status

The condition of being a part of a group that is smaller in number and often experiences differential treatment or discrimination within a larger societal context.