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.

Question

Quizplus · Accepted Answer

The auditor should perform additional audit procedures to investigate the matter further to understand the cause of the fluctuations and gather sufficient appropriate audit evidence.

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