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

Question

Quizplus · Accepted Answer

When significant unexplained differences are revealed, the auditor should perform additional audit procedures to investigate the matter further to obtain sufficient evidence or find an acceptable explanation. Option A is not appropriate as this matter does not imply a scope limitation. Option C is not appropriate as the auditor should not assume the presence of fraud without sufficient evidence. Option D is not correct as withdrawing from the engagement is not an appropriate solution.

Assume That Application of Analytical Procedures Revealed Significant Unexplained Differences