Assume That Application of Analytical Procedures Revealed Significant Unexplained Differences

question 16

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:

Probability

A quantitative measure indicating the likelihood or chance of a certain event occurring.

Neurotransmitter

Chemical agents that facilitate communication between neurons across synapses in the nervous system.

Dopamine

A neurotransmitter associated with pleasure, movement, and attention in the brain.

Amphetamine

A potent central nervous system stimulant used in the treatment of attention deficit hyperactivity disorder (ADHD) and narcolepsy, and sometimes as a recreational drug.