When applying analytical procedures during an audit, which of the following is the best approach for developing expectations?

Question

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When developing expectations during analytical procedures, it is important to identify reasonable explanations for unexpected differences before talking to client management. This ensures that any unexpected variations can be explained before drawing conclusions or raising concerns with the client. Option A involves using unaudited account balances and ratios, which may not provide accurate information. Option C involves considering unusual changes without trying to explain them, which is not an effective approach. Option D involves comparing client data with client-determined expected results, which may not necessarily be accurate or reliable. Thus, the best approach is to identify reasonable explanations for unexpected differences before talking to client management.

When Applying Analytical Procedures During an Audit, Which of the Following