The Auditor Notices Significant Fluctuations in Key Elements of the Company's

question 81

Multiple Choice

The auditor notices significant fluctuations in key elements of the company's financial statements. 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 examination with the expectation of detecting management fraud.
• D)withdraw from the engagement.

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Definitions:

Questionnaire

A research instrument consisting of a series of questions or statements used to gather information from respondents.

Correlations

The statistical relationship between two variables.

Variables

Variables are elements, features, or factors that are liable to vary or change.

Reverse-Scored Items

Items in a questionnaire designed to be scored in the opposite direction from most items to control for response biases.