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

question 53

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:

Despite Resistance

Occurring in the face of opposition or efforts to prevent or discourage it.

Ability To Get

The capacity or means to acquire or obtain something, often referring to resources, information, or skills.

Petite-Bourgeoisie

A social class between the bourgeoisie and the working class, often associated with small business owners and managers.

Lumpen-Proletariat

A term used to describe the underclass that does not contribute to the workforce and is not considered in Marxist theory to play a pivotal role in the revolution against capitalism.