When Are Auditors Likely to Encounter Judgment Problems in the Use

question 4

Multiple Choice

When are auditors likely to encounter judgment problems in the use of analytical procedures?

• A)Whenever the auditor places reliance on management's explanations for unusual fluctuations in account balances without first developing independent expectations
• B)Whenever the auditor allows unaudited balances to unduly influence his/her expectations of current balances
• C)Whenever the auditor fails to consider the pattern reflected by several unusual fluctuations when trying to explain what caused them
• D)The auditor is likely to encounter judgment problems in each of the above instances.