When Applying Analytical Procedures During an Audit, Which of the Following

question 20

Multiple Choice

When applying analytical procedures during an audit, which of the following is the best approach for developing expectations?

• A)Considering unaudited account balances and ratios to calculate what adjusted balances should be.
• B)Identifying reasonable explanations for unexpected differences before talking to client management.
• C)Considering the pattern of several unusual changes without trying to explain what caused them.
• D)Comparing client data with client-determined expected results to reduce detailed tests of account balances.

---

Definitions:

Economic Development

The process by which a region, country, or community improves the economic, financial, and social well-being of its people.

Compensatory Strategy

A method designed to offset or make up for a deficiency or limitation, often utilized in educational settings, workplace accommodations, or social policies.

Specific Learning

Pertains to a particular or focused area of learning, often implying specialized education.

Wheelchair

A chair mounted on wheels for use by individuals who cannot walk due to illness, injury, or disability.