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:

Mentally Ill

Referring to individuals who suffer from mental disorders that affect their cognition, behavior, and abilities to function in daily life.

Printed

Referring to material that has been produced by a printing process, such as books, documents, or photographs, typically on paper.

Psychogenic Approach

A perspective in psychology and medicine that attributes the cause of symptoms or disorders to psychological factors rather than organic or physiological bases.

Understanding Psychopathology

The study of abnormal thoughts, feelings, and behaviors, aiming to comprehend the nature, causes, and treatments of mental disorders.