For an auditor to make the decision about whether a change noted in analytical procedures is unreasonable he needs knowledge of
A)the client's industry
B)current political conditions
C)current economic conditions
D)the client's competitors
E)the prior year's audit
F)both A and C
G)both B and D
H)both B and E

Question

Quizplus · Accepted Answer

The auditor needs knowledge of the client's industry and current economic conditions to assess whether a change noted in analytical procedures is reasonable or not. Political conditions and the client's competitors may be relevant but are not as critical as industry knowledge and economic conditions. The prior year's audit may provide some information but is not sufficient on its own.

For an Auditor to Make the Decision About Whether a Change